According to PWC, the U.S. capital markets are experiencing the most prolonged period of high volatility since the 2008 financial crisis, owing to the Russia-Ukraine war, supply chain bottlenecks, record-high inflation, and the possibility of aggressive federal rate hikes. The high-yield bond market is estimated to witness certain downtrends with rising rates. Moreover, the overall growth estimates of the economy have also been slashed.
However, according to the IMF, the United states’ current economic stand looks strong enough to handle tightening federal policies. Therefore, oversold capital markets stocks possessing solid fundamentals could witness significant bounce backs in the near term.
