These 2 Blue Chip Stocks Trading Near 52-Week Lows – Is It Time to Invest?

Rising concerns over recession and rate hikes have weighed on investors’ sentiments. Amid the heightened volatility in the market, investors often favor blue-chip stocks for their stability and reputation.

However, I think this is not the right time to invest in blue chip stocks Union Pacific Corporation (UNP – Get Rating) and Chesapeake Energy Corporation (CHK – Get Rating). These stocks are trading near their 52-week lows.

While the threat of a US debt crisis might be receding fast, the litany of problems that had been temporarily overshadowed by the specter of a US default, amongst which are high inflation, rising interest rates, and sluggish growth, haven’t gone away. The economy still faces the risk of a recession.

Carsten Brzeski, global head of macro research at Dutch bank ING ING Groep N.V. (ING – Get Rating), said, “Even with the “worst-case scenario” off the table, “we are still looking into a scenario of a global slowdown.”

Additionally, Federal Reserve policymakers will probably hike the target range for the federal funds rate at their upcoming meeting. The members of the Federal Open Market Committee are 70.5% likely to opt for a 25 basis-point increase in the benchmark rate when they meet next month.

Moreover, according to Statista, there is a probability of 68.2% that the United States will fall into another economic recession by April 2024. This is an increase from…

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