The investors’ concerns over numerous economic and geopolitical issues have aggravated stock market volatility since the beginning of 2022. Inflation is at a 40-year high as the U.S. inflation rate increased by 8.5% in March, according to the Labor Department. Amid the skyrocketing inflation, Fed plans to raise interest rates by 50 basis points in May to fight the pricing pressures. This has further fueled the investors’ concerns about the global economic slowdown. In addition to Fed’s hawkish stance, the intensifying geopolitical tensions and resurgence of COVID-19 cases in different parts of the world are expected to keep the stock market under pressure.
Since the stock market volatility is expected to surge in the near term, the investors should prefer investing in stocks with strong financials coupled with promising growth attributes, which could deliver great returns during this recessionary period. The penny stocks are considered attractive investments due to their potential for above-average returns.
