Here’s Why High Growth Stocks Might Be Back (With Three on My Watchlist)

High growth stocks have had a tough run in 2021.

In fact, Cathie Wood’s Ark Innovation Fund (ARKK) is down -1.5% this year. That’s in contrast to an incredible 146% gain in 2020.

But Mrs. Wood’s popular high growth fund might be ready for another surge. And it all has to do with the US government bond market:

The last few months inflation expectations were rising and this was good news for value stocks, as they tend to outperform during periods of:

• High economic growth
• High inflation expectations

Conversely, both high economic growth and inflation are bad for high growth stocks. 

But it seems like this trend may be reversing according to a reliable economic indicator called the “yield curve.”

Here’s Why You Need to Care About Bonds (Just a Little Bit)

There are multiple...