Is Now the Best Time to Buy Stocks? 2 Bullish Signals in This Bear Market
The Federal Reserve has taken drastic steps to rein in galloping inflation. In September, the central bank raised its benchmark interest rate for the fifth time this year as Fed officials voted in favor of a third consecutive 0.75% rate hike. Interest rates are now rising at a pace not seen since the 1980s, and projections from Fed officials imply further rate hikes before the end of 2022.
That news left already-alarmed investors feeling more pessimistic about the economy. On one side, rampant inflation could slow consumer spending and weaken the profits of countless companies, setting in motion a vicious cycle that could tip the U.S. economy into a recession. But on the other side, the Federal Reserve's aggressive monetary policy to slow inflation could also slow consumer spending, bringing about the exact same outcome.
Investors have battled those fears all year, leading to a profound downturn in the stock market. The S&P 500 is currently 21% off its high, and the Nasdaq Composite is down 30%. Those sharp declines put both widely followed indexes into bear market territory.
Source Fool.com
