3 of the Smartest Stocks to Buy in a Fed-Induced Bear Market
Last year, things couldn't have gone more swimmingly for the stock market. The Federal Reserve was intent on maintaining its dovish monetary stance, and historically low interest rates were fueling hiring, acquisitions, and innovation throughout the tech sector.
But, oh, what a difference a year can make!
Last week, the U.S. Bureau of Labor Statistics reported that the trailing-12-month inflation rate hit 8.3% in April, which is just a hair below its 40-year high. Although some aspects of inflation have been out of the Federal Reserve's control (e.g., Russia invading Ukraine), hindsight has demonstrated that the nation's central bank left its foot on the accelerator for far too long. Keeping interest rates near historic lows for years -- including purchasing long-term bonds via quantitative easing -- looks to be a key reason the Nasdaq Composite has lost more than a quarter of its value and pushed firmly into a bear market.
Source Fool.com
