![]() ![]() With China's exports falling 0.3% in October in dollar terms year over year, global aggregate demand could be potentially weaker than expected. In addition to rising rates domestically, the international economy could face headwinds given that China's exports fell in October for the first time in over two years. Many analysts think there could be a recession next year and the Federal Reserve has signaled it isn't done raising rates. In the near term, however, there is uncertainty even for blue chips if economic data fails to meet expectations. Given that many blue chip companies have strong competitive advantages and growth potential, however, some leading blue chips could be good buys in terms of long term investments as valuations potentially return closer to normal if the Federal Reserve successfully contains inflation. Like the Dow Jones, many blue chip stocks have declined substantially in terms of their stock prices year to date. The NASDAQ has fallen the most, declining almost 34% year to date. Treasury yields substantially and the higher Treasury yields have made stocks less attractive to some investors.Īs a result of the headwinds, the Dow Jones Industrial Average is down 11.4% year to date while the S&P 500 has fallen 21.4% year to date. Similarly, the rising interest rates have increased U.S. With lower demand, companies are not investing as much, especially given that the cost of debt is also higher. consumer has less spending power and consumer demand is lower. Given the high inflation in the United States, the Federal Reserve has raised interest rates six times this year and many analysts think the central bank will raise the rate even further. If you want to see more of the best blue chip stocks to buy today, go directly to 5 Best Blue Chip Stocks To Buy Today.Ģ022 has been a challenging year for many stocks in the market. In this article, we will take a look at 12 of the best blue chip stocks to buy today.
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