Concerns about the Fed’s ability to tame inflation without pushing the economy into a recession have caused the stock market to tumble to a 13-month low recently. And according to Goldman Sachs strategists, even if a recession is avoided, the outlook for U.S. stocks isn’t particularly bright at this juncture.
According to Invesco’s Brian Levitt, investors are getting grossly bearish at this stage with such volatile market circumstances, and most of them are crowding over safe-haven dividend stocks, which promise to offer stable returns irrespective of market fluctuations. Investors’ interest in high dividend-yielding stocks is evident in the iShares Core High Dividend ETF’s (HDV) 5.2% returns over the past six months.
