Economic headwinds, including the Fed’s hawkish tilt and Russia’s invasion of Ukraine, have triggered a bear market. The market’s volatility has driven sharp selloffs in growth stocks. Furthermore, the equity indexes have declined dramatically since the start of the year. The NASDAQ Composite Index has plunged 16.1% year-to-date, while Dow Jones Industrial Average has stumbled 8.7% year-to-date.
However, the current bearish market sentiment provides an opportunity for investors to buy stocks with strong fundamentals at bargain prices. The recent dip in fundamentally sound growth stocks has caused them to become undervalued.
