We are now approaching the end of 2023, and while the S&P 500 Index ($SPX) briefly entered into a correction in October, it has not only rebounded from those levels but also hit new 2023 highs recently. Specifically, growth stocks - which bore the brunt of the market crash in 2022 - have shown strength this year.
As background, growth stocks tend to underperform in a rising interest rate environment, as the earnings of these companies are skewed towards the future - and these earnings become less valuable in current dollar terms when discounted at a higher rate.
