The stock market has witnessed a massive sell-off of late on concerns over the Fed’s aggressive interest rate increases to fight multi-decade-high inflation. A potential slowdown in consumer spending, continuing geopolitical tensions, rising energy prices, and intensifying supply disruptions have fostered bearish investor sentiment.
According to JPMorgan Chase CEO Jamie Dimon, the chances of the Fed curbing inflation without instigating a recession stand at 33%. Amid this situation, investors could turn toward dividend-paying stocks to hedge their portfolios against short-term market volatility by ensuring a steady income stream.
