The Federal Reserve recently announced its third consecutive 75-basis-point hike to bring down inflation, which is hovering around its highest levels since the 1980s. As the Fed might deliver more jumbo-size rate hikes this year, the odds of a recession are increasing.
The major market indices have suffered massive losses with dampened investors’ sentiments. The S&P 500 index has declined nearly 22% year-to-date, while the Nasdaq Composite fell more than 29% over this period. Moreover, according to experts, stock market losses wiped out more than $9 trillion from Americans’ wealth at the end of the second quarter, and the losses could increase further.
