U.S. markets jumped Monday, with the technology and growth segments taking charge. Investors can capture the growth style through targeted exchange traded fund strategies.
While inflation concerns remain in the background, investors are dipping back into areas that have been the most sold-off this year. Some may even believe that the inflationary pressures could be short-term.
“Inflation concerns have lessened, there’s more of a wider recognition that inflation will be transitory,” Fahad Kamal, chief investment officer at Kleinwort Hambros, told the Wall Street Journal. “This is reflecting the fact that we hit the fastest part of the recovery. Growth, while continuing, is going to be at a decelerating pace.”
Inflation concerns also abated as investors began to price in the prospects of a smaller-than-anticipated infrastructure bill.
“The reason interest rates are coming down is because many on Wall Street are questioning how successful President Biden will be in pushing through that stimulus package, or pushing through as big an infrastructure package as he is hoping,” Sam Stovall, chief investment strategist at CFRA Research, told Reuters.
“Yields are coming down because inflation worries are coming down and as a result we are finding that tech stocks are becoming a bit more attractive once again,” he added.
As the growth style rebounds from the pummeling it received from the inflation-induced selling pressure, investors can look to strategies like the American Century Focused Dynamic Growth ETF (FDG), which is designed to invest in early-stage, high-growth companies. FDG is a high-conviction strategy designed to invest in early-stage, rapid growth companies with a competitive advantage, along with high profitability, growth, and scalability.
Additionally, investors can look into the American Century STOXX U.S. Quality Growth ETF (NYSEArca: QGRO). QGRO’s stock selection process is broken down into high-growth stocks based on sales, earnings, cash flow, and operating income, along with stable-growth stocks based on growth, profitability, and valuation metrics.
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