After an interest rate increase last month, the Federal Reserve is expected to raise rates by half-point each in May and June, according to economists polled by Reuters. Furthermore, increased Western sanctions on Russia are intensifying worldwide supply chain disruptions. However, despite slashed growth estimates, the U.S. economy looks strong enough to sustain its recovery.
According to Freedonia Focus Reports, U.S. nominal GDP is forecast to grow 5.6% per year through 2025. Thus, fundamentally strong growth stocks might offer significant gains amid consistent demand and rising employment opportunities. Investors’ interest in growth stocks is evident in the iShares S&P 500 Growth ETF’s (IVW) 8.6% returns over the past month, compared to the SPDR S&P 500 Trust ETF’s (SPY) 7.5% returns.
