Earlier this month, the Federal Reserve raised interest rates by 75 basis points to tame the 40-year high inflation. Moreover, the Fed is expected to deliver another 75 basis-point interest rate hike next month, followed by a 50 basis-point rise in September. While the market witnessed a rebound last week, the expected monetary policy is adding fuel to recession concerns and will likely keep the market under significant pressure.
However, the extended market correction over the past couple of months has led several fundamentally strong stocks to trade at attractive valuations. Undervalued stocks with strong financials, healthy cash flows, and solid growth prospects could see a solid rebound when recession concerns subside.
