Investors’ concerns over several macroeconomic issues that include sky-high inflation and the Fed’s rigorous efforts to combat it by raising the interest rates have precipitated an equity market correction over the past few weeks. Furthermore, according to experts, these factors combined with persistent geopolitical uncertainties, rising oil prices, and supply chain disruptions have increased the odds of the U.S. economy slipping into a recession.
Goldman Sachs recently lowered its forecast for U.S. economic growth in 2022. The investment bank now expects U.S. GDP to grow by 2.4% for the year, compared with its prior estimate of 2.6%. Furthermore, the S&P 500 is down more than 16% year-to-date and recorded its sixth straight week of losses for the first time since 2011 last week, despite a relief rally on Friday. However, we believe the recent correction is an excellent opportunity for investors looking to bottom-fish.
