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2 Inflation-Resistant Stocks to Buy Right Now


Outsized inflation is generally bad for stocks because it prompts the Federal Reserve to raise interest rates, and higher rates have a tendency to cause the economy to slow. That said, not all stocks react the same way to inflation.

One quite visible sign of this effect on stocks is in relation to how inflation affects commodity prices. As inflation rises, commodity producers will outperform commodity users. Take oil for example: In a rising oil market, the drillers will probably benefit while the airlines will probably suffer.

Image source: Getty Images.

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Source Fool.com

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