Wall Street's fear gauge, the CBOE Volatility Index (VIX), has climbed 78.8% year-to-date on investors’ growing concerns about issues that include high inflation, supply chain disruptions, and a likely recession due to the Federal Reserve’s hawkish stance. This has caused the markets to suffer immense selloffs over the past few weeks.
The major benchmark indexes saw a recovery yesterday on President Biden’s announcement regarding the easing of tariffs on China, but lingering issues make the market susceptible to further pullbacks. Since the market is expected to absorb the risks gradually, long-term investors should grab this opportunity and bet on fundamentally sound stocks trading at very reasonable prices.
