As inflation remains at discomforting levels, the swings in the stock market are expected to amplify further as we enter the second half of the year. Therefore, investors could consider adding some exposure to stocks such as Biogen Inc. (BIIB – Get Rating), Celestica Inc. (CLS – Get Rating), and Biglari Holdings Inc. (BH – Get Rating), which have gained significant momentum lately.
Although the Federal Reserve signaled a potential end to its hiking cycle, the stronger-than-expected economic data in recent weeks have induced a fresh bout of volatility in the markets. Investors now await another quarter-percentage-point interest rate hike at the June meeting, bringing the federal funds rate to 5.25% – 5.5%.
Moreover, the minutes from the last meeting showed some members indicated that sticky core inflation would likely keep monetary policy tighter for longer and that more hikes could be coming down the pike later in the year.
With inflation still reigning well above the Fed’s target at 5% and the Fed not cutting rates anytime soon, credit conditions will continue to tighten. This, in turn, comes out as a warning that a recession is lurking just over the horizon. As a result, market experts are once again ringing the alarm bells over an imminent downturn in the second half of 2023.
Thus, for those looking to hedge against market uncertainty this year, the below-mentioned stocks possess robust fundamental strength, favorable outlook, and strong momentum. So, it could be wise to invest in…
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