The stock markets turned bearish last month, entering correction territory. The S&P 500 index fell 5% last month, thereby registering its worst performance since March 2020. Several socio-economic and geo-political issues brewed, worsening the market environment, which ended January with a colossal sell-off. Because the market is expected to remain volatile, we think it unwise for investors to bet on stocks with a poor outlook, irrespective of their popularity.
Furthermore, despite being overtly popular, certain stocks are significantly overvalued and might suffer price retreats soon. According to BofA Securities’ Savita Subramanian, investors should proceed with caution.
