3 Stocks to Buy With Inflation Potentially Peaking
Recently, data for both the Consumer Price Index and Producer Price Index came in better than expected for July. Investors use these indexes to gauge how inflation is trending, and both now suggest inflation may have peaked last month. That's welcome news to a stock market that has been hammered this year.
The declines were led by a drop-off in energy prices, so if this trend reverses, high inflation could persist. However, the Federal Reserve's ongoing rate hikes should also begin to bring down other prices soon. Here are three stocks to buy now that inflation looks to be peaking.
The second-largest bank in the U.S. by assets, Bank of America (NYSE: BAC), has been heavily sold off this year like most bank stocks. It was a little weird to see bank stocks sell off so intensely; the sector has been waiting for a real rising interest rate environment since the Great Recession. But with inflation at a 40-year high, investors were concerned that the Federal Reserve and its aggressive rate hikes might tip the economy into a recession.
Source Fool.com
