The stock market witnessed a recovery rally in July after reaching bear market territory during the year's first half. However, the market has lately surrendered some of the gains on concerns over an aggressive monetary policy stance by the Federal Reserve, the ongoing energy crisis in Europe, and signs of an economic slowdown in China.
Many analysts believe that the Fed will likely keep its hawkish stance intact until it reduces inflation to its target level. GLOBALT Investments’ senior portfolio manager, Tom Martin, said, “The market is biding its time to get more information on the most important things, which are inflation and the Fed’s rate path.”
