A Bull Market Is Coming: This Warren Buffett Stock May Soar
Even Warren Buffett isn't immune to bear markets. Last year, some of the billionaire investor's most exciting picks delivered dismal returns. One of those players was e-commerce and cloud-computing giant, Amazon (NASDAQ: AMZN). The stock sank 49%, underperforming the S&P 500 index.
But here's the good news: Difficult market times and declines in top stocks like Amazon won't last forever. In fact, a bull market is on the way. How can I be so sure? History shows that bull markets always follow bear markets. And in one of those optimistic, rising markets, growth stocks -- such as Amazon -- could thrive. Let's take a closer look at why.
First, let's check out why this Buffett stock sank in the first place. Higher inflation has hurt Amazon in two ways: It's driven Amazon's costs higher on everything from running warehouses to delivering packages; and it's weighed on consumers' buying power. That means they have less to spend -- even on essentials.
Source Fool.com
