The stock market has witnessed significant volatility due to several macroeconomic and geopolitical headwinds this year. With inflation remaining elevated and the possibility of the Fed raising interest rates aggressively, the market is expected to remain volatile.
Amid this uncertain environment, a good strategy could be buying stocks that have gained momentum recently and are well-positioned to maintain the same based on their strong fundamentals and growth prospects, irrespective of the market movements. Investors’ interest in momentum stocks is evident from the Invesco DWA Momentum ETF’s (PDP) 8.2% returns over the past month.
