The stock market has been extremely turbulent over the past few months. Skyrocketing inflation, the Fed’s aggressive interest rate hikes, political instability, the resurgence of COVID-19 cases in China, and the possibility of an economic slowdown have fostered bearish sentiment recently. Yesterday, U.S. stocks plunged in response to U.S. inflation data, further deepening investors' worries about the interest rate outlook and the economy. Over the past month, the S&P 500 Index has slumped 11.5%, while the Nasdaq Composite Index has declined 16.7%.
Amid the market downturn, it could be profitable to invest in companies with strong financials and solid growth prospects. These companies have managed to survive the intense market fluctuations. Because the macroeconomic and geopolitical factors are not expected to change anytime soon, investing in fundamentally solid stocks with high resilience, robust financial strength, and pricing power could ensure solid returns to investors.
