With inflation still running red hot at 7.1% in November 2022 and potential recession peeking around the corner, market volatility is widespread. Last month the Federal Reserve raised the interest rates by a 50-basis-point. As the economy faces high inflation and the Fed continues to hike interest rates in an effort to limit the rising prices, the U.S. could be headed for a recession in 2023.
In a Bankrate survey, economists predicted a 65% chance of a recession in 2023. Meanwhile, a December-end American Association of Individual Investors (AAII) survey showed nearly twice as many investors predict that the stock market will go down in the next six months than those who think it will rebound. Also, the International Monetary Fund, in its latest outlook, projected that global growth would fall to 2.7% in 2023.
