Fed Chair Jerome Powell might not be ready to give the market what it wants in terms of rate cut rhetoric, but investors are nevertheless betting on a more favorable interest rate environment next year - and that should be good news for some of Wall Street's favorite growth stocks as we head into 2024.
Simply put, growth stocks are like the go-getters of the stock market - they're companies expected to ramp up their sales and earnings faster than the usual market pace. Investors who buy into these names are hoping for outsized capital appreciation in the long run, as these companies typically don't pay out dividends - and in fact, they often rely on debt to help fund their growth, at least in the early years.
