With inflation still elevated, the Fed raised interest rates again despite the turmoil in the financial system. Therefore, recession fears resurface on Wall Street. Amid the uncertain macroeconomic backdrop, quality large-cap stocks Taiwan Semiconductor Manufacturing Company Limited (TSM), Johnson & Johnson (JNJ), and Merck & Co., Inc. (MRK) could be wise investments for generating stable returns.
According to Bank of America’s fund manager survey, the probability of a recession is back on the rise for the first time since November 2022. Approximately 42% of fund managers expect a recession within the next 12 months, an increase from 24% in February. Also, Goldman Sachs Group’s Chief Economist Jan Hatzius sees a 35% chance of a recession in a year, up from the 25% forecasted previously.
