Good evening,
If you’ve been to the grocery store, had a car repair, or been out to dinner—or, let's face it, if you've participated in the economy in 2024—you know that prices are not coming down.
That was confirmed by the November Consumer Price Index (CPI) and Producer Price Index (PPI) readings, which both showed inflation rising year-over-year at a level above the Federal Reserve’s 2% target.
Normally, when inflation pokes its head above the Fed’s target, the Federal Reserve raises interest rates or at least keeps them the same.
However, the Federal Reserve already cut rates by 75 basis points in 2024. And by the time you read this, the Fed could have cut rates by another 25 basis points.
With consumer spending remaining strong, you have a setup for too much money chasing too few goods, meaning inflation is likely to stay higher for longer, probably well into 2025.
As a consumer, there’s not much you can do about inflation.
But as an investor, you have a way of using sticky inflation to your advantage.
You do that by buying stocks of companies that perform well in periods of high inflation.
In this special presentation, we’re highlighting seven stocks that can deliver solid gains for investors even if inflation stays higher for longer.
The companies on this list have one or more of several attributes:
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They are defensive (i.e., must-have products and services)
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They have pricing power
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Analysts are raising their ratings and/or price targets
Investors who made savvy tactical moves in 2021 were rewarded as inflation reached 40-year high levels. Inflation isn’t likely to get that high, but a rate of inflation around 2.6% to 3% may still affect companies that lack strong fundamentals. Even if you do nothing else, make sure that you get rid of companies that are likely to underperform the market if inflation stays higher for longer.
View the 7 Stocks to Buy if Inflation Remains Higher for Longer
The MarketBeat Team
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