Since the beginning of this year, the market has been highly volatile. The volatility has been fostered primarily by investors' concerns over record-high inflation and the Fed’s decision to raise interest rates several times this year. Furthermore, the United Nations has warned that the global economic recovery is losing steam and facing consequential headwinds amid the COVID-19 pandemic. In addition, supply-chain issues and poor labor market data are also fostering stock market volatility. The International Monetary Fund (IMF) has downgraded its 2022 global growth forecast to 4.4%.
However, we believe beaten-down growth stocks are ideal bets now for investors seeking to maximize their returns over the long term. Investors' interest in growth stocks is evidenced by the SPDR Portfolio S&P 500 Growth ETF's (SPYG) 17.5% gains over the past year.
