The Fed has already announced two rate hikes within the first five months of 2022. This, along with the apprehensions regarding further hikes, has severely dampened investor sentiment over the past few weeks. According to Federal Reserve Bank of Cleveland President Loretta Mester, up to a 75 bps rate hike is still quite possible later this year.
However, Fed Chair Jerome Powell is still optimistic about a difficult but potential ‘soft landing’ against all odds. Therefore, mega-cap stocks with a versatile product portfolio and robust financials are estimated to withstand the short-term market fluctuations and help investors wade through the crisis.
