Surging inflation and the rising oil and gas prices have dampened investor sentiment. After announcing its first-rate hike in more than three years recently, the Fed plans to raise interest rates more aggressively to control the multi-decade high inflation. Moreover, the sanctions on Russia may lead to a further increase in oil and gas prices. These factors may keep the stock market under pressure.
Betting on momentum stocks could be a good strategy during such volatile market conditions. Stocks with impressive momentum during times like these, often maintain their upwards inertia for some time. Investors’ interest in momentum stocks is evident from the Virtus Terranova U.S. Quality Momentum ETF’s (JOET) 15.9% returns over the past year.
