The Fed’s persistent interest rate hikes to combat the surging inflation and increasing odds of a possible recession have led to immense volatility in the stock market. Nevertheless, an improving job market, a rebound in consumer sentiment, and better-than-expected corporate earnings have restored investors' confidence in the market, helping benchmark indexes witness occasional rallies lately.
However, the macroeconomic headwinds are not expected to ease anytime soon, and investors might witness a continued bear market, given that the Fed will raise interest rates by an expected 75 basis points next week. Therefore, it could be wise to invest in dividend-paying stocks to generate a steady income stream.
