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This article was originally published on Dividend Kings on Wed, January 25th, 2023.
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2022 was a terrible year for growth stocks that suffered a one-two-punch of the fastest interest rate increases in 40 years and growth concerns.
That’s because the bond market is now estimating a 100% chance of a recession in 2023, thanks to the Fed’s war on inflation.
Do you know who agrees with the bond market that a recession is very likely this year?
- 85% of economists in the Wall Street Journal consensus
- 85% of CEOs in Bloomberg’s survey
- 85% of Americans
For companies like Alibaba (NYSE:BABA) and Amazon (NASDAQ:AMZN), growth concerns are especially important right now.
Like many big tech companies, Amazon hired a lot of people since the Pandemic. In fact, it hired almost 800,000 workers, doubling the size of its workforce.
In 2021 alone, it doubled its delivery capacity. Let me put that in perspective.
Over 25 years, Amazon built up one of the most impressive global delivery infrastructures in history. And in a single year, they doubled that capacity to keep up with the…
