The stock market has been facing immense volatility over the past few weeks due to various macroeconomic factors and geopolitical uncertainties. However, yesterday S&P 500, Dow Jones, and Nasdaq recovered 2%, 1.6%, and 2.7%, respectively. Despite yesterday's rally, the uncertainties prevailing in the broader market are expected to keep the investor's overall sentiments bearish. According to a famous economist David Rosenberg, the S&P 500 will further crash by 17% to 3,300.
In addition, the Fed's hawkish stance to tame the multi-decade high inflation and the consequent possibilities of a recession is expected to keep the market volatile. Therefore, it could be wise to bet on quality, low-priced stocks, which are expected to rebound significantly in the coming months.
