Despite the progress in bringing inflation down from last year’s peak of 9.1%, it remains above the Federal Reserve’s long-term target. The Fed will likely keep raising interest rates which could tip the economy into a recession later this year.
A recession usually affects the profitability of various sectors, and equipment companies are no exception. Given the high likelihood of a recession this year, it could be wise to avoid fundamentally weak equipment stocks FuelCell Energy, Inc. (FCEL), Solid Power, Inc. (SLDP), and Advent Technologies Holdings, Inc. (ADN).
