On the heels of sticky inflation and strong economic data, the Fed will likely raise interest rates even higher than previously estimated. The potential rate hikes and an economic downturn are expected to keep the stock market highly volatile. In this scenario, investors should avoid Snap Inc. (SNAP), Plug Power Inc. (PLUG), Peloton Interactive Inc. (PTON), and AMC Entertainment Holdings, Inc. (AMC), given their weak fundamentals and bleak growth prospects.
A year after the first interest rate hike, the Fed has a long way to go in its fight against inflation. Hopes of disinflation were dashed with high inflation levels in goods, housing, and other sectors and recent economic data showing job growth and strong retail sales.
