1 ETF to Buy in 2023 and 1 to Avoid Like the Plague

The persistent market volatility, intensified by the recent high-profile bank failures and rising recession risks, is unlikely to abate anytime soon. Investors looking to invest in ETFs could consider buying Vanguard S&P 500 ETF (VOO – Get Rating) in 2023.

However, considering the lingering macroeconomic headwinds, I think it is best to steer clear of fundamentally weak ARK Innovation ETF (ARKK – Get Rating) now.

The Federal Reserve launched its first of eight interest rate increases on March 16, 2022, as it committed to bring inflation down. Inflation has decreased from an annual rate of 8.5% to 6%, but remains well above the 2% target.

According to Jeffrey Gundlach, CEO of DoubleLine Capital, a recession might occur within the next four months, as recent bank failures in the United States have exacerbated the tightening of financial conditions caused by higher borrowing rates.

Torsten Slok, the chief economist at private equity firm Apollo Global Management, said…

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