The Worst Stock Selloff In Half a Century Might Not Be Done Yet
- Inflation and recession threats spell more trouble ahead
- Investors expect more declines, keep defensive positions
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It’s been a chaotic, and costly, time for many investors. But 2022 is only half over and the stocks tale will probably have more twists and turns before the year is up.
Coming off the worst first-half since 1970, US equities now face a triple whammy of sticky inflation, recession risks and the threat to corporate profits from sinking consumer confidence. After just about everyone on Wall Street got their 2022 predictions wrong, investors are now focused on a toxic mix that spells stagflation, as well as more damage to valuations.