By Steve Sciortino via Iris.xyz
Year-to-date through the middle of September, U.S. growth stocks have posted outstanding results, with the Russell 1000 Growth Index gaining approximately 16%. In contrast, the Russell 1000 Value and S&P 500 Indices have returned close to 6% and 11%, respectively. To gain some insights on the current environment, and to better understand the opportunities and risks in the market, we recently spoke with Justin Kelly, CEO and CIO at Winslow Capital Management (“Winslow”) and Portfolio Manager for Mainstay Large Cap Growth Fund since 1999.
Large cap growth stocks leading in performance year-to-date
Source: Morningstar, as of 9/20/18. Past performance is not indicative of future results. It is not possible to invest directly in an index. Index definitions found at the end of this blog post.
The tax reform tailwind
One of the drivers of this year’s exceptional returns for large-cap growth stocks is tied to the benefits from tax reform. The most obvious benefit is the lower corporate tax rate. Less obvious is the huge Capex cycle that it has triggered.
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