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Will Signs of Peak Inflation Bring About a Turnaround in “Growth” Stocks?

Headwinds diminishing and valuations now more attractive

Laurence Taylor, Portfolio Specialist
T. Rowe Price,  October 2022

Key Insights

  • Inflation is having an impact on both consumers and corporates, but signs of demand destruction should bring an inflation peak closer.
  • A potential peak in inflation coincides with equity markets that have derated quite significantly, with some stocks trading at extreme valuations.
  • Inflation rolling over provides a potential reset for growth stocks, especially for those with the ability to compound and grow earnings through the next stage of the equity cycle.

Access the full report from T. Rowe Price