Over the past year, growth stocks have been plagued by the Fed’s aggressive interest rate hikes. When interest rates move higher, growth stocks look less attractive to investors. With inflation falling, the Fed is looking toward smaller rate hikes this year.
After a year of consolidation, growth stocks, Salesforce, Inc. (CRM), McKesson Corporation (MCK), and ADT Inc. (ADT), could prove to be favorable investments for potential gains in 2023.
With a hotter-than-expected jobs report and inflation rising sequentially in January, Fed officials remain cautious as inflation remains above the Federal Reserve’s target of 2%. Minutes from the Fed’s policy meeting earlier this month show that the members believe “ongoing” rate hikes would be necessary.
On the other hand, according to Goldman Sachs Group Inc.’s (GS) Chief Credit Strategist Lotfi Karoui, the Fed would be able to bring inflation down and achieve a “soft landing.”
Continue reading at STOCKNEWS.com