2 Stocks to Buy if Inflation and Shortages Cause a Stock Market Crash
Stock market crashes and corrections happen. Since the end of World War II, the benchmark S&P 500 has tumbled 10% or more 27 separate times. They've been slightly more common this century, however, with corrections of 10% or more occurring in 12 out of the last 21 years.
A bear market of at least a 20% decline will also eventually occur again. Last year's market crash due to the onset of the global pandemic saw the Dow Jones Industrial Average lose 37% of its value between February and March. Soaring inflation and stubborn supply chain hiccups could at least cause a correction, if not a recession, as the Federal Reserve has signaled it is ready to raise interest rates in 2022 to combat runaway price increases.
A Bankrate survey found 70% of analysts believe a reversal is imminent within days to the next six months. Soaring stock values since the COVID crash could lead to deferred stock selling in the new year to get ahead of Fed rate increases.
Source Fool.com
