A Bull Market Is Coming. Should You Return to Growth Stocks?
After a tough 2022, the market offered us a glimmer of hope recently. The three major indexes rallied in the first month of the year. And that's got all of us ready to welcome the next bull market. Are we being too optimistic? I don't think so. Here's why.
Bear markets generally last about a year. But whether this particular market slump turns out to be a bit shorter or a bit longer won't change one important point: Bull markets always follow bear markets. That means better days are ahead, and it's not too early to prepare. The idea of a bull market makes me think of growth -- and therefore growth stocks. Should we return to these players that the market battered last year? Let's find out.
It's not surprising that some investors turned away from growth stocks as the economic situation deteriorated. In troubled times, investors favor companies that are less sensitive to higher costs and consumer spending. They go for steady companies selling products people can't avoid buying. So drugmakers or makers of consumer staples may benefit -- and their shares may outperform the market. We saw that happen last year.
Source Fool.com
