High inflation and the subsequent aggressive interest rate hikes by the Fed to tame it have affected growth stocks significantly this year. However, the latest data shows signs of inflation cooling down. Therefore, the Fed is expected to raise interest rates at a slower pace.
The Conference Board CEO, Steve Odland, believes that while the interest rate hikes could spur a recession, any potential downturn is expected to be mild. Therefore, growth stocks might rebound in the upcoming months. Investors’ interest in growth stocks is evident from the Vanguard Growth ETF’s (VUG) 4.5% gain over the past month.
