This year has been rough so far for the U.S. stock market. Equities have been under immense pressure lately amid 40-year high inflation, the Fed Reserve’s aggressive interest rate hike, a resurgence in COVID-19 cases in China, and a geopolitical crisis. Last month, the three major equity indices entered bear territory. Over the past month, the S&P 500 Index and NASDAQ Composite Index have plunged 7.7% and 11.6%, respectively.
Furthermore, U.S. GDP declined 1.4% in the first quarter of 2022. And following the negative GDP growth, the U.S. economy seems to be heading toward recession. Amid the possibility of a recessionary environment, investors have been opting for fundamentally sound stocks because they are considered attractive investments owing to their solid financials and long-term growth potential. In addition, these stocks have high resilience to market turbulence, historically.
