The stock market has been exceptionally volatile since the beginning of the year. Stretched equity valuations, concerns about the Fed’s aggressive interest rate hikes, historic 40-year high inflation, rising oil prices, and a prolonged Russia-Ukraine conflict are contributing factors to the heightened market volatility. The CBOE Volatility Index has jumped 21.8% year-to-date, and macroeconomic uncertainties pushed the market into bear earlier in the year.
Despite the recent spike in equity markets, shares of companies with deteriorating fundamentals and bleak growth prospects are expected to remain under pressure. Such companies have weak financials and a history of huge losses.
