Are Growth Stocks in for More Pain in 2023?
By just about every metric, 2022 was a terrible year for growth stocks but a solid one for value stocks.
The Dow Jones Industrial Average outperformed the Nasdaq Composite by the largest margin in over 20 years. Ark Innovation ETF, Cathie Wood's exchange-traded fund, lost 67% of its value in 2022, while Warren Buffett's Berkshire Hathaway gained 4%. And the Vanguard Growth ETF lost 34% of its value last year, while the Vanguard Value ETF fell just 5%.
One of the million-dollar questions of 2023 is whether value stocks can continue outperforming growth stocks. But instead of speculating on short-term trends, there are better questions to ask: What role do you want growth stocks to play in your portfolio? Are they right for you in the first place? If so, what kind of growth stocks give you the best chance to reach your financial goals while aligning your investments with your personal risk tolerance?
Source Fool.com
