Is It Safe to Buy Growth Stocks Again?
Growth stocks ruled the market for much of the last decade, benefiting from a low-interest-rate environment and strong growth in the tech sector.
However, that track record of outperformance came to an abrupt end in 2022 as interest rates jumped, and many companies posted disappointing results as they faced difficult comparisons after strong growth during the pandemic.
As the chart below of the Vanguard Growth ETF (NYSEMKT: VUG) shows, growth stocks are still barely off their lows from this year, and the index fund is still down nearly 30% for the year, significantly underperforming the S&P 500.
Source Fool.com
