U.S. growth stocks have enjoyed yet another banner year, despite the turbulence in the global economy. This sector has once again outperformed all other domestic and international benchmarks, continuing the trend from last decade.
A just-published report examined the long-term outlook for U.S. equities, including growth stocks, and noted that the performance of the latter was becoming historically stretched. Moreover, some of the conditions that would herald an end to the uptrend were starting to emerge, or more are expected to develop in the coming year.
The report concluded that the bulk of the gains in U.S. growth stocks have already been realized, and that further material global equity gains in the years ahead will need to be driven by laggard markets.