What the experts say

Growth stocks defy odds; Riding China’s boom; A lesson in savings

Growth stocks defy odds

In these times of economic uncertainty, you’d think that investors would flock to defensive stocks, said Paul Lim in The New York Times. But “money managers are betting on what has often been a riskier segment of the market: growth stocks.” Since July, growth stocks in the Russell 1000 index are up 2 percent, while “defensive-minded value stocks” are down more than 7 percent. Growth stocks make sense now for a few reasons. If the Federal Reserve keeps cutting rates later this year, as it’s expected to, growth stocks should benefit. Many growth stocks also have been laggards recently, giving them “less room to fall” if the market heads south soon, according to Ernest Ankrim, Russell’s chief investment strategist.

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