Indicating that growth stocks are in the initial stages of a hot comeback, the iShares Russell 2000 (NYSEARCA:IWM), whose movements are largely determined by growth stocks, is up nearly 5% year-to-date. Moreover, on March 20, the U.S. Federal Reserve’s Summary of Economic projections indicated that the central bank still intends to cut its benchmark rate by 0.75 percentage points this year.
That outlook is likely to make the Street, which tends to view rates as extremely important for growth stocks, much more positive about those equities. And, lower rates will indeed help many of these companies, since a high percentage of them have to borrow a great deal of money in order to expand. Given all of these points, I believe that this is an excellent time to buy these hot growth stocks.
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