The benchmark indexes have experienced wild swings since the beginning of the year due to the Fed’s aggressive interest rate hikes and two consecutive quarters of negative economic growth. This has led to many quality stocks now trading at reasonable valuations.
Market volatility has been rife due to August’s CPI (Consumer Price Index) coming higher than estimates and the Fed announcing the third consecutive 75 basis point benchmark interest rate hike last month. With the Fed raising its key rate estimates for 2022, a recession by next year is highly likely.
