The decline in financial markets have been brutal over the past several months. Financial markets appear to have reached a crescendo in the second half of 2021. Stocks no longer went up simply because they were going up as the Biden administration signaled it was going to unwind quantitative easing (“QE”). Meme stocks like Moderna (MRNA), Novavax (NVAX) and Tesla (TSLA) have fallen sharply from their all-time highs, unlikely to recover. The concepte of “meme stocks” appears to be a thing of the past. Government stimulus had driven assets and financial markets higher over the past decade. I did not believe the Fed would unwind it until it actually happened. It is now happening.
Fed rate hikes have driven bond yields higher and hurt the outlook for economic growth and corporate earnings growth. The 10-year treasury yield now hovers around 300 basis points and bond prices may have overshot to the downside. The question remains, “Which stocks represent buying opportunities?” Shocking The Street believes Evofem Biosciences (EVFM) has strong upside. Hold on for the ride. Read more: