The continued Ukraine-Russia war, intensifying supply chain disruptions, and the possibility of aggressive interest rate hikes this year to combat inflation, which hit a fresh 40-year high in March, have kept the stock market under pressure lately. Moreover, many economists expect the U.S. economy to witness a recession in the near term, as indicated by the soaring oil prices.
Therefore, investors should consider betting on quality stocks that tend to remain resilient amid such uncertainties surrounding the stock market and economy. Since quality stocks are considered to generate steady earnings and revenue and possess high profitability, they could be a great hedge against market volatility. Investors' interest in high-quality stocks is evident from the Invesco S&P 500 Quality ETF's (SPHQ) 8.4% returns over the past year and 2.6% gains over the past month.
