Amid inflation wreaking havoc across consumer markets, another 75 bps Federal rate hike is basically a certainty, and as such a consequent economic slowdown is expected to follow. The New York Fed’s model has shown an 80% probability of recession and some of the largest banks in the world have echoed this sentiment.
Moreover, the Atlanta Fed’s GDPNow model estimated a GDP decline in the second quarter, which coupled with the negative growth of the first quarter, would mean we are technically in a recession. Given the grim outlook, investors seem to increasingly opt for dividend investing to safeguard their portfolios, as is evident from the SPDR S&P Dividend ETF’s (SDY) 4.4% gains over the past month.
