The Fed's intention to raise interest rates aggressively later this year to tame the surging inflation has created bearish sentiment among investors. According to Deutsche Bank, the economy could fall into a major recession before the end of 2023 if the Fed hikes interest rates to 5-6%. Further, no easing of tensions related to the Ukraine-Russia war and rising energy prices are expected to keep the market volatile in the near term.
Moreover, this year's uncertain economic recovery could put further pressure on the stock market. Therefore, investors could consider investing in dividend-paying stock to ensure a steady income stream and dodge near-term market fluctuations.
