Growing concerns over high inflation, rising Treasury yields, escalating sanctions on Russia, deepening supply chain constraints, and rising COVID-19 cases have been inviting immense volatility in the stock market. This, combined with rising energy prices, might lead the economy to witness contraction.
As these bearish factors are expected to persist in the near term, it could be wise to bet on fundamentally-sound non-cyclical, or defensive, companies that enjoy an inelastic demand for their products.
