equity quiz investor, recovery, equity, growth

king_kong

growth investor do well in :
A slowing economy
B recovery
C expansion economy

mik82

Agree with Paraguay. Growth is scarce in a downturn, so investors drive up the prices on these rare gems. However, in a downturn, stocks in general don't do well, so it depends on the context.

lcw77

answer is A
During an ecnomic expansion, earnings growth is abundant—even in the depressed stocks preferred by a value investor—which may cause this premium to above-average growth to shrink or vanish. By contrast, when companies with positive earnings momentum become scarce, as in a slowing economy, earnings growth becomes a scarce resource commanding a higher price, and growth investors may do relatively well