The deepening of supply chain constraints due to the ongoing Russia-Ukraine crisis, high inflation, and the resurgence of COVID-19 cases are expected to keep the stock market under pressure. Many are even predicting an economic downturn due to persistent inflation and soaring energy prices.
However, rising investments in various sectors of the economy and increased focus on domestic production should help the economy recover, even if at a slower pace. The uncertainties surrounding the economy and the stock market do not bode well for large-cap growth stocks, as they typically benefit from an economic expansion. The iShares S&P 500 Growth ETF’s (IVW) 1.3% returns over the past week indicate investors’ underwhelming interest in large-cap growth stocks.
