The stock market has faced a massive sell-off lately on concerns over soaring inflation and rising interest rates. The S&P 500 plunged 19.8% year-to-date. Amid this backdrop, it could be wise to invest in stocks that have gained momentum, as their momentum might continue for some time irrespective of the external forces.
Earlier this month, the Federal Reserve hiked interest rates by 75 basis points and indicated further aggressive monetary tightening to bring the prices down. Many analysts expect the Fed’s rate hikes to eventually result in a recession, leading to further downside for most stocks.
