The major stock market indexes have exhibited wild price swings since the beginning of the year due to multi-decade high inflation and the Fed’s forthcoming interest rate hikes. The Russia-Ukraine war has added to investors’ concerns and led to several market sell-offs of late.
Russia has been subjected to numerous sanctions by several countries, with the United States and the United Kingdom this week announcing bans on Russian oil imports. Despite declining more than 12% from its peak yesterday, the increase in crude oil prices has come as a blow to the economic recovery. Given this scenario, investors could bet on shares of defensive companies because of the near-inelastic demand for their products and services. These stocks usually withstand market shocks and deliver steady returns.
