Despite high inflation and supply chain disruptions, fourth-quarter corporate earnings have been impressive. However, escalating economic sanctions on Russia and rising oil prices due to a ban on Russian oil imports into the U.S. might keep the stock market under pressure.
While inflation is expected to remain high, analysts expect past stimulus spending to drive economic growth this year and beyond. Therefore, growth-focused companies are expected to benefit. Investors’ interest in growth stocks is evident in the iShares Russell Top 200 Growth ETF’s (IWY) 2.6% returns over the past nine months versus the SPDR S&P 500 Trust ETF’s (SPY) 1.4% gains.
