Following the Russian invasion of Ukraine on 24th February this year, the financial markets have witnessed increased volatility around stocks and other equities.
The Russian invasion of Ukraine has heightened the industry's uncertainty, especially concerning the disruption of energy exports.
Russia is the world's 11th largest economy and one of the world's major energy producers.
After the invasion, the S&P 500 index recorded its first correction in over two years, meaning it fell by over 10% from its peak.
The stock market's response to the conflict has been consistent with historical trends in geopolitical crises.
However, there are growing concerns that the financial implications of the war on the stock market may be increasing.
This has led many investors to consider investing in recovery stocks.
Recovery stocks are securities and equities that have fallen in price due to crises like wars but are believed to possess the capacity to recover.
All recovery stocks share one similar characteristic: they have dropped in prices but are not worthless.
They still possess the promise of heading upward in the future.
How then can you pick the best recovery stocks, and what are the signs that a stock is currently at risk of bottoming and therefore likely to recover?
In this article, we shall consider all you need to know before investing, the signs of stocks bottoming, what to do during a stock market crisis, and how to select the best recovery stocks.