Is It Safe to Buy Growth Stocks During the Bear Market? Here's What History Says.
The S&P 500 is commonly viewed as a benchmark for the broader U.S. stock market due to its diverse composition. It tracks value stocks and growth stocks that represent the largest companies from all 11 market sectors. Last year, the S&P 500 dropped into a bear market as investors panicked about a possible recession, and the benchmark index is still 18% off its high.
But many growth stocks have fallen more sharply. In fact, the S&P 500 Growth Index -- which tracks the growth stocks in the index -- is currently down 28%, while the S&P 500 Value Index is down just 8%. Clearly, growth stocks tend to be more sensitive to economic changes, and the drawdown might get worse if inflation remains elevated or interest rates continue to climb. Here's what investors should know.
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Source Fool.com
