Equity markets continue to remain vulnerable, given massive headwinds surrounding global economies. For example, the U.S. is grappling with rising inflation rates, while the ongoing war between Russia and Ukraine is driving commodity prices higher. Additionally, the supply chain disruptions are here to stay given the rising COVID-19 cases in China, which have already invoked province-wide lockdowns in the country.
As a result, growth stocks have been seeing red lately, as represented by the Vanguard Growth ETF (VUG), which is down more than 16% year-to-date (YTD), compared to the S&P 500 which is down 9.3%. Fintech stocks, many of which are considered growth stocks, have not been spared from this sell-off. Stocks such as SoFi (SOFI) and Nu (NU) are trading down 48% and 36% YTD, respectively.
