In its December meeting, the Federal Reserve’s decision to raise interest rates and reduce its overall asset holdings sooner than it originally planned to combat high inflation caused the stock market to sell-off last week. This has caused many quality stocks to suffer price dips.
However, considering the prospect of a solid economic recovery, growth stocks should perform well this year. Investors’ interest in growth stocks is evidenced by the iShares Russell Top 200 Growth ETF’s (IWY) 11.3% returns over the past nine months versus the SPDR S&P 500 Trust ETF’s (SPY) 9.4% gains during the period.
