Inflation is an unavoidable consequence of a market-based economy. In the best case, inflation is fueled by rising consumer demand, which itself is triggered by rising wages. That's why the Federal Reserve has a target rate of 2% inflation. A little inflation can be helpful to an economy.
But in 2024, inflation has become a little like that annoying dinner guest who has overstayed their welcome. Many Americans don't want it to go away angry; they just want it to go away.
It seemed like that was happening in 2023. Investors and analysts were optimistic about disinflation. That is, a slowdown in the rate of inflation. Prices weren't dropping, but they weren't going up as quickly as they did in 2022.
But the February readings of consumer prices (CPI) and producer prices (PPI) show inflation may be heating up. And this time, it's not necessarily about consumer demand. This round is about government spending, geopolitical concerns, and (slightly) rising oil prices.
But as investors, you know that some stocks do very well in times of inflation. These are defensive stocks that come from companies that make products consumers can't do without.
That's the focus of this special presentation. However, one thing to note about each of these stocks is that analysts expect them to do well even if inflation remains muted. But if the rate of inflation ticks higher, these stocks are likely to outpace the market.
Click the "Continue to Slide #1" button to view the first company.
