With the Fed’s third consecutive 75-bps interest rate hike triggering a broad market sell-off, indices have hit new lows, confirming that we are deep within the bear market territory. With the central bank officials now predicting the key rate to end this year at a range of 4.25% to 4.5%, up from the previously projected range of 3.25% to 3.5%, it seems unlikely that markets will return to stability anytime soon.
Furthermore, Florida State University economist Jerry Parish said that the economy is headed into a recession in the next nine months. He doubts that the Fed can control inflation without causing a recession. However, these market uncertainties also present an opportunity for bargain hunters to load up on stocks of robust businesses at attractive prices.
