The market has witnessed an extended sell-off so far in 2022 due to aggressive interest rate hikes to combat rising inflation and more economic slowdown. The sharp sell-off yesterday took the year-to-date losses of the S&P 500 index to 13.6% and those of the Dow Jones Industrial Average and the Nasdaq Composite index to 9.4% and 22.7%, respectively.
However, the bearish market provides investors with a golden opportunity because many quality stocks are now trading at attractive valuations. Fundamentally-sound companies with solid growth prospects could generate significant returns in the near term.
