Soaring inflation and the government's response to it has helped send the S&P 500 into bear market territory. In response, many investors are making changes in their portfolios, looking to add consumer staples and energy stocks. Food and fuel are necessities, so those sectors tend to outperform during market downturns. However, both sectors have still dramatically underperformed the broader S&P 500 over the past five years.
That underperformance suggests that it makes more sense to look for bargains among the beaten-down growth stocks. Businesses like Cloudflare (NYSE: NET) and HubSpot (NYSE: HUBS) provide critical services for their clients. That means both businesses should continue to grow throughout the inflation-driven downturn, and that should translate into a strong rebound during the next bull market.
Here's why you shouldn't hesitate to buy these growth stocks.
For further details see:
2 Growth Stocks to Buy Without Hesitation in an Inflation-Driven Bear Market