The stock market was on a wild ride last year due to the double whammy of skyrocketing inflation and the Fed’s interest rate hikes, coupled with geopolitical tensions. However, a series of recent positive economic data boosted investors’ confidence.
Inflation fell for the sixth consecutive month to 6.5% in December, bolstering hopes of a soft landing among investors and smaller interest rate hikes by the Federal Reserve going forward. Despite the steady waning, the central bank remains committed to bringing inflation down to its 2% target, implying more interest rate hikes this year.
Many economists believe the Fed’s aggressive regime has triggered a broader slowdown in the economy, predicting a 61% chance of a recession in 2023. This is expected to keep the stock market under pressure this year.
Two ETFs that investors should keep an eye on in 2023 are the Health Care Select Sector SPDR Fund (XLV) and…
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