After a strong start to the year, US stocks returned to reality in February, when the main US indexes posted their second negative month in three months. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all fell in February. And while March is usually a positive month for stocks, this year could bring more turbulence as inflation soars, a potential recession and fears of a regulatory crackdown. in China for a long time. What is most concerning, however, is undoubtedly the path to rate hikes, with market pundits anxiously awaiting the Federal Reserve’s next rate decision on March 22 amid growing uncertainty. there are high expectations that there could be more rate hikes. In February, the Fed raised the federal funds rate by 0.25 percentage points, bringing it to a target range of 4.5%-4.75%, the highest level since October 2007. Alexander Morris , chief investment officer at F/m Investments, said the Fed continued Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, said he believes the Fed will raise rates by 75 to 100 basis points. Anastasia Amoroso, chief investment strategist at iCapital, believes the “biggest market risk” right now is for the Fed to raise the end-of-term rate to somewhere between 6% and 6.5%. “I think we will probably end the year with interest rates above 6% given persistent inflationary pressures and the economy seems to be absorbing 5% rates well,” she said in a note to CNBC on Wednesday. Six. How to Trade So where should investors put their money in this context? One area of fixed-income is clear, with Ma Yung-Yu, chief investment strategist at BMO Wealth Management, calling the asset class “a welcome relief and a boon to an investment portfolio. .” “We like short-term Treasuries and we like short-term corporate bonds. You’re getting 5%. [yield] for short-term Treasuries, more so for investment grade companies, and that’s a pretty good steady return you can look for. He told CNBC’s “Street Signs Asia” on Wednesday that fixed income really has a big place in portfolios today. “What makes the best classics for private equity? It’s times like this. It’s a recession year,” she said. David Dietze, managing director at Peapack Private Wealth Management, believes that investors should “maintain direction” in stocks. He noted that stock prices “didn’t hit highs” — and the market never failed to bounce back to new highs. “Historically, it’s also been a better time to stay confident,” he added, during a time of negative market sentiment. At some point, the labor market will weaken, and that could weaken the Fed’s resolve to keep raising rates. There are a lot of markets where valuation isn’t a challenge,” Dietze said in a note to CNBC on Wednesday. Meanwhile, Jim Lydotes, portfolio manager of the Global Infrastructure Income Fund BNY Mellon demand, said investors should look for specific characteristics when investing in “High level of equity income offering some solid returns, very defensive business models decoupled out of the business cycle and, importantly, businesses can price higher to capture inflationary pressures,” he said.