The stock market experienced wild swings in the first half of 2022, as evidenced by the CBOE Volatility Index's (VIX) 28.4% year-to-date gains. Furthermore, the stock market is expected to remain under immense pressure due to sky-high inflation, consecutive interest rate hikes, and recessionary pressures.
In the current environment, investors prefer companies with solid profit margins and cash flows, as well as promising growth prospects. Such financially strong companies may be able to hedge against market uncertainties. The decline in such stocks due to the broader market sell-off has created an excellent opportunity to acquire these fundamentally sound stocks at bargain prices.
