Last month, the Fed raised interest rates by 75 basis points for the third consecutive time in response to higher-than-expected inflation in August. The central bank also hinted at more hikes to control the surging inflation. Since the rising interest rates are making borrowing expensive for individuals and corporates, the economy is expected to witness a recession early next year, and the stock market could continue seeing extreme volatility.
According to a CNBC Delivering Alpha investor survey, 58% of the 400 investors surveyed believe that the Fed is being too aggressive and more than 60% believe that the S&P 500 will end the year below the 4,000 mark. Moreover, the energy shortage in Europe and the ongoing Russia-Ukraine war add to the economic turbulence.
