Bull Market or Recession? 2 Resilient Index Funds That Are Proven Moneymakers to Buy Now and Hold Forever (No Matter What Comes Next)
The Federal Reserve has raised its benchmark interest rate to its highest level in more than two decades, but the U.S. economy has shown remarkable resilience in spite of tighter credit conditions. Real gross domestic product increased at an annual rate of 2.1% in the second quarter, roughly in line with the 20-year average, and Fed policymakers are forecasting similar growth for the full year.
Yet the risk of a recession remains. While business spending held up better than expected, consumer confidence is trending downward, and second-quarter consumer spending came in well below consensus estimates. Additionally, inflation has reaccelerated in recent months, so Fed policymakers plan to keep interest rates higher for longer than previously anticipated.
All of that is to say: The future is cloudy. The Fed may engineer a soft landing, or the economy could slip into a recession. The former could revitalize investor sentiment and push stocks toward a bull market; the latter would pressure corporate profits, potentially sending stocks into a nosedive. No one knows what will happen in the near term, but that is no reason to avoid the market.
Source Fool.com
