Investing in the Stock Market in 2022 with Puru Saxena

<p>Things are getting dicey out there, and it's <a href="https://7investing.com/articles/april-2022-ceo-letter-is-this-the-end-of-long-term-investing/">shaking the resolve</a> of quite a few investors.</p> <p>The stock market has spent the past half year in a free fall. The S&amp;P 500 is down 17% from its December highs, while the tech-heavy Nasdaq is down 28% from its peak in November. Many individual stocks are faring even worse, with some down 60%, 70%, or more from their previous highs.</p> <p>Shell-shocked investors have been searching for the reasons behind the current market hysteria. Many believe the culprit of this year's severe selloff is due to the headwinds blowing in the face of the US economy.</p> <p>American inflation hit 8.5% in April, which is the highest annual increase in more than forty years. The Fed, looking to tame that inflationary beast, has driven up interest rates aggressively in recent months. Higher rates make it more challenging for consumers or businesses to borrow, which tends to slow down the expansion of the economy.</p> <p>And the report card of the business world is the stock market. Always forward-looking, stocks have sold off in anticipation of the economy's upcoming struggles. Slower growth and rising interest rates are both net-negatives in the calculations of a stock's intrinsic value (all other things being equal).</p> <p>So what are investors to do?</p> <p>Is now the time to be aggressive, being greedy when others are fearful and buying up bargains when there's blood in the streets? Or is it time to get defensive, prioritizing cash flows and a strong balance sheet as the most important factors of consideration?</p> <p>Furthermore, how long will these macroeconomic issues last for? What would happen to stocks if the US goes into a recession? Or conversely, are there new opportunities that might arise like a phoenix out of this crisis?</p> <p>To help us answer those questions, we've brought in an expert. <a href="https://twitter.com/saxena_puru">Puru Saxena</a> is a retir