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...