3 High-Growth Stocks to Secure Your Financial Future
In 2016, Bank of America/Merrill Lynch released a report that aimed to answer the age-old question of which is the better investment: growth stocks or value stocks?
For its research, B of A/Merrill Lynch analysts examined the 90-year period between 1926 and 2015. Their research found that value stocks outperformed growth stocks over this 90-year time frame (17% returns per annum versus 12.6%). Mind you, no one is complaining if they're achieving a 12.6% annual return per year over a nine-decade stretch, as opposed to 17%.
However, the data also showed an interesting, and somewhat recent, bifurcation. As interest rates have lowered considerably since the Great Recession, growth stocks have begun to run circles around value stocks. That's because access to capital is less costly, making it more enticing for growth stocks to get aggressive with regard to innovation, acquisitions, and hiring. With this low interest rate environment perhaps becoming the new norm in America, it squarely puts high-growth stocks in focus to outperform.
Source Fool.com
