Federal Reserve Chair Jerome Powell said on Wednesday that the central bank could slow the rapid pace of interest rate hikes at its December meeting while indicating a protracted economic adjustment to a world where borrowing costs remain high, and inflation comes down slowly.
After the Fed Chair’s speech suggesting slower rate increases, stocks rallied. The three major indexes, the S&P 500, Dow Jones, and Nasdaq Composite, have climbed 9.7%, 8.1%, and 9% over the past month, respectively.
Despite the recent market rally, many experts have pessimistic predictions for the following year. Jake Jolly, a Senior Investment Strategist at BNY Mellon, said, “Our view is that this is not an enduring rally. The odds are there’s going to be a recession next year, and that’s going to pressure risk assets like equities.”
Given the uncertain prospects of the stock market, we think it could be wise to invest in dividend-paying ETFs SPDR Dow Jones Industrial Average ETF Trust (DIA), iShares Select Dividend ETF (DVY), JPMorgan Ultra-Short Income ETF (JPST), First Trust Low Duration Opportunities ETF (LMBS), and First Trust Value Line Dividend Index Fund (FVD) this month to ensure a stable income stream.
SPDR Dow Jones Industrial Average ETF Trust (DIA)
DIA tracks the Dow Jones Industrial Average, one of the most famous benchmarks in the world. It tracks some of the most famous and profitable companies in the country, known as…
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