Tech Sell-Off: 2 Bargain Growth Stocks to Buy Before the Rebound
Tech stocks have been hammered recently, especially those trading at rich valuations. There's a good reason for that. It's expected the Federal Reserve will raise interest rates 3 to 7 times this year to combat rampant inflation, setting in motion a chain of events that should ultimately slow inflation by reducing business and consumer spending. Of course, less spending also means slower corporate revenue growth, which means those richly valued stocks now look even more expensive.
That being said, adding money to the market is the best move you can make during a downturn. Over the last 25 years, the S&P 500 has delivered an annualized return (adjusted for inflation) of 7%, despite weathering three bear markets. The S&P 500 Information Technology Index has performed even better, delivering annualized returns of 10.6%. That data makes a strong case for buying a few beaten-down tech stocks right now.
Image source: Getty Images.
Source Fool.com
