Why I'm a Believer In the Rebound of Growth Stocks
Stocks generally fall into one of three broad categories: Value, income, or growth. Value stocks are those priced below their intrinsic value. Income stocks provide reliable dividends that investors can rely on for supplemental income. Growth stocks are rapidly growing companies whose revenue is expected to increase much faster than the rest of their industries.
This year has been less than ideal for most investors, but especially so for those focused on growth stocks. I'm not worried, though. I firmly believe that growth stocks will rebound, and here's why.
During bear markets and other down periods, growth stocks tend to get the short end of the stick. Let's look at the S&P 500, which is used to gauge the overall stock market's performance, and the S&P 500 growth index, which is composed of the growth companies in the S&P 500, as examples.
Source Fool.com
