The 4 Best Market Sectors for the Second Half of 2022 Relatively strong economic data, along with reassuring minutes from the Fed’s last meeting, seem to have dampened investors’ greatest fears. As a result, the near-term and medium-term outlook of several market sectors have greatly improved. In accordance with the views that I’ve expressed over the last few months, recently reported economic data has shown that the U.SA. is not in a recession and will not experience one anytime soon. Specifically, an index of U.S. services came in at a robust 55.3, meaningfully above the average estimate of 54. Meanwhile, “job openings” fell just 4% in May and came in 254,000 ahead of analysts’ average outlook. Finally, new jobless claims, as The Wall Street Journal explained, “still hovered near recent lows.” All of this data is completely incompatible with the idea of a traditional recession happening now or anytime soon. Turning to the Federal Reserve minutes, the central bank’s governing board “recognized the possibility that an even more restrictive stance could be appropriate if elevated inflation pressures were to persist.” Reading between the lines, I think that suggests that the Fed is likely to scale back its rate increases if inflation eases.