Last year was challenging for growth stocks, as value stocks trounced growth equities due to the Federal Reserve’s aggressive interest rate hikes to combat the soaring inflation. The outperformance is evident from the Russell 1000 Value index’s marginal decline over the past year, compared to the Russell 1000 Growth index’s 13.8% decline.
However, inflation declining for the sixth consecutive month in December has raised hopes that the slowdown will soon allow the Federal Reserve to end the cycle of aggressive interest-rate hikes and engineer a soft landing.
