7 Growth Stocks Looking Attractive Following a Correction
Though the benchmark equity indices have made some robust moves recently, their performance since the beginning of the year remains negative, with growth stocks underperforming. Nevertheless, for contrarians willing to ride out potential turbulence, there may currently be an opportunity to steadily acquire positions while stock prices are relatively cheap. For one thing, buying growth stocks following a correction theoretically expands investors’ return potential. Starting from a lower threshold, they will have more runway to work with than those buying shares at higher valuations. As well, the law of small numbers – the concept that higher-magnitude gains are easier to achieve from lower starting points – may provide them with a tailwind. Secondly, U.S. equities generally have an upward bias. Partly due to the massive size of the U.S. economy and the dollar’s status as the world’s reserve currency, it’s good to be an American investor. Therefore, those investing in U.S. stocks can be fairly confident that even beaten-down growth names can rebound if they’re tied to fundamentally sound businesses.
7 Growth Stocks Looking Attractive Following a Correction
Though the benchmark equity indices have made some robust moves recently, their performance since the beginning of the year remains negative, with growth stocks underperforming. Nevertheless, for contrarians willing to ride out potential turbulence, there may currently be an opportunity to steadily acquire positions while stock prices are relatively cheap. For one thing, buying growth stocks following a correction theoretically expands investors’ return potential. Starting from a lower threshold, they will have more runway to work with than those buying shares at higher valuations. As well, the law of small numbers – the concept that higher-magnitude gains are easier to achieve from lower starting points – may provide them with a tailwind. Secondly, U.S. equities generally have an upward bias. Partly due to the massive size of the U.S. economy and the dollar’s status as the world’s reserve currency, it’s good to be an American investor. Therefore, those investing in U.S. stocks can be fairly confident that even beaten-down growth names can rebound if they’re tied to fundamentally sound businesses.