Will Inflation Destroy Growth Stocks? (And How You Can Profit)

Inflation is the big investment topic this month.

Money printing will further destroy the dollar’s value, and everything will get more expensive. Additionally, growth and tech stocks will collapse in value as investors rotate into commodities or value plays.

At least that’s what the experts say.

The basic theory goes something like this: Rising interest rates make borrowing money harder. This, in turn, hinders the growth of debt-laden tech companies.

Scary stuff, especially if you're holding stocks trading at enormous valuations.

But what can you do?

Never Chase Trends

Last year was all about tech companies and "The New Economy." Stocks like Zoom and DocuSign soared. Meanwhile, REITs and blue chip businesses were dirt cheap. Nobody was ever going outside again, and big tech was the only sensible investment left.

Now trends are reversing.

Gold is back in the news, Barron’s is running articles on "low volatility stocks," and dividends are cool again.

Nothing wrong with this, but a combination of higher interest rates and sector rotation could lead to growth stocks dropping considerably. And if this…