A decline in GDP in the second quarter, a cooling job market, and a slowdown in business activity worldwide are fueling recession fears. However, better-than-expected corporate profits and the Fed’s indication of a thinner policy tightening based on economic data restore investor optimism in the market.
Since the recent market rallies may not indicate the end of troubles, many highly priced stocks could still witness significant downsides. Although penny stocks are extremely volatile, buying the ones with fundamental strength could be rewarding in the long run.
