The major benchmark indexes have been correcting since the beginning of the year. The multi-decade high inflation, the Fed’s looming interest rate hikes this year, and the crisis in Ukraine have led to significant stock market volatility.
The sanctions imposed on Russia have magnified the supply chain disruption and caused crude oil prices to spiral out of control. Amid market uncertainty, it could be wise to hedge one’s portfolio by investing in companies having solid business models as they tend to hold up strongly during an economic slowdown. These stocks are considered safe owing to their strong fundamentals, thereby helping them outperform during market downturns.
