Last week’s Federal Reserve interest rate increase has thrown cold water on investor sentiment. Furthermore, with continuing geopolitical tensions and COVID-related lockdowns in China, markets might continue to founder in the coming quarters. According to analysts at Deutsche Bank, the S&P 500 is projected to decline by 20% in 2023.
In addition, according to a recent UBS investor sentiment survey, 51% of respondents have opined that the market is more volatile than usual. So, amid widespread apprehension of a potential future recession, investors should now avoid fundamentally weak stocks.
