3 Glorious Growth Stocks to Buy Hand Over Fist if the Stock Market Crashes
The stock market is on a collision course with an increasing number of headwinds.
Overview
The S&P 500 stock market index has more than doubled from its 2022 bear market low point, driven by the technology sector, which has produced particularly strong returns thanks to the ongoing artificial intelligence (AI) boom. However, a rising inflation rate, interest rate hikes, and even a potential slowdown in AI development by labs like Anthropic and OpenAI could derail the current bull market.
The risk of a severe downturn is especially high right now because of the market's elevated valuation. The S&P 500 has a Shiller Cyclically Adjusted Price-to-Earnings (CAPE) ratio of 41.4, the second-highest level since the peak of the dot-com internet bubble in 2000. The index plummeted by 49% when that bubble eventually burst, and while I'm not predicting a similar decline this time around, investors might want to use caution.
Details
Fortunately, the market typically trends higher over the long term, so any severe crash will almost certainly be a buying opportunity. Below, I'm going to share three stocks that investors might want to scoop up at a discount if the broader market tumbles and these stocks dip with it.
Source
Originally published at www.fool.com.