Recessionary fears have revived once again amid the credit crunch triggered by the recent financial system failures, which were exacerbated further by the quarter-point rate hike by the Fed. Given the uncertain macroeconomic backdrop, let us explore the stocks UnitedHealth Group (UNH), Danaher Corporation (DHR), and ServiceNow, Inc. (NOW), which might be the strongest stocks to buy now.
Since inflation remains well above the Fed’s target rate of 2%, the Fed’s rate hike for the ninth consecutive time by 25 basis points winched up the benchmark rate to 4.75%-5%. This move came in despite the recent banking sector tumult, which soared anticipations of the Fed’s rate hike pause.
Experts anticipate results of such monetary policy tightening could be excruciating and tip the economy into a painful recession. According to the latest Bank of America survey, about 42% of fund managers see a recession happening within the next 12 months, up from 24% in February.
Moreover, Minneapolis Fed President Neel Kashkari believes that the banking sector turmoil brings the U.S. economy closer to a recession. Recently, responding to a question, he stated, “What’s unclear for us is how much of these banking stresses are leading to a widespread credit crunch. And then that credit crunch, just as you said, would then slow down the economy.”
Against this backdrop…
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