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Searching for Growth Stocks in 2021

Since drug companies first began reporting promising efficacy rates for a COVID-19 vaccine, hopes in some circles have been restored that the economy could return to normal soon, even as infection rates have begun to spike nationwide at an alarming rate. This has ignited a flight to cyclical and value sectors.

The conventional wisdom is that this rotation follows about an eight-month period in which growth – specifically in the tech sector – has become overcrowded, with a long line of firms benefiting from work-from-home trends. While that’s true, the fact is that the bias for growth sectors in recent months is not a near-term phenomenon.

This goes back to the financial crisis. At the time, the Federal Reserve implemented a series of policies, including quantitative easing and interest rate cuts to previously unheard-of levels, to encourage growth and spending.

Sarah Goldberg
Sarah Goldberg

Sarah is a seasoned financial market expert with a decade of experience. She's known for her analytical skills, attention to detail, and ability to communicate complex financial concepts. She holds a Bachelor's degree in Finance, is a licensed financial advisor, and enjoys reading and traveling in her free time.

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