If you’re sweating it out day after day checking your balances, watching them fluctuate with every gyration of the global economy and utterance from the Fed, imagine this: that it’s not just your retirement savings at stake, it’s your day job to navigate markets. For intel on how a professional is approaching the stock market, we spoke to Jordan Stuart, a client portfolio manager at global asset manager Federated Hermes.
During this period of “macro-induced uncertainty,” investors typically sell growth stocks first and “ask questions later,” said Stuart, who thinks this mentality is wrong. Growth, which refers to stocks with positive business momentum and accelerating fundamentals, will be more resilient if the economy continues to get worse, he said. Small-cap growth stocks are cheaper than large-caps and will likely be the first to recover, Stuart noted. And they are less susceptible to persistent higher rates than large-cap technology stocks, he added.
