The stock market continues to experience high volatility due to galloping inflation and deepening supply chain disruptions. Although the supply chain crisis eased slightly in January and February this year, the current conflict between Russia and Ukraine and lockdowns imposed in major Chinese cities with the surge in COVID-19 cases have resuscitated concerns over a supply shortage.
Though current ceasefire talks between Ukraine and Russia may cause oil, gold, and commodity prices to decline slightly this week, the stock market will likely remain under huge pressure in the near term. Analysts don’t expect the Fed to raise interest rates significantly this year, so an inflationary environment is expected to continue. So, to hedge one’s portfolio against high inflation, we think it could be wise to bet on high dividend-yielding stocks.
