The stock market has been on a rough ride with inflation wreaking havoc across consumer markets, the Russia-Ukraine war, and the multiple rate hikes. The multi-decade high inflation has prompted the Fed to enact the second consecutive 0.75 percentage point rate hike this week, which in turn is raising recession possibilities.
Moreover, the U.S. economy contracted for the second straight quarter, declining 0.9% at an annualized pace for the period April to June. In addition, the IMF has slashed its global growth projections for 2022 and 2023 to 3.2% and 2.9%, respectively. Given the gloomy outlook, investors seem to be increasingly favoring dividend stocks to ensure a stable income stream.
