The major stock market indexes have experienced a massive correction this year on mounting concerns about multi-decade high inflation, the prospect of further interest rate increases, the Russia-Ukraine war, and several other factors. The S&P 500, which returned nearly 27% to investors last year, has lost more than 15% year-to-date. And Bank of America’s chief investment strategist Michael Hartnett asserted that based on historical bear market trends, there could be months of pain ahead.
Furthermore, a negative GDP rate in the first quarter of 2022 and high energy prices indicate the possibility of the economy slipping into recession. However, amid the current market turmoil, market strategists believe that there are still opportunities for investors to generate returns, though they may need to be highly selective.
