2 Smart Stocks to Pick During a Market Correction
The U.S. equity market has been highly volatile in the past few days. The April 2021 consumer price index (CPI) came in at 4.2 (a metric used to gauge inflation), which was far higher than the Federal Reserve's average inflation target of 2%. This made the market justifiably jittery about the possibility of tightening monetary policy adversely affecting stocks.
In an April 27–28 Federal Open Market Committee meeting, several officials suggested the need for plan to tapering the pace of asset purchases to control increasing inflation. While this might not be happening immediately on the back of slowing job growth in April 2021, sooner or later, the Fed will have to intervene. This could result in a prolonged stock market correction.
However, these uncertain times can also prove to be an attractive opportunity for retail investors to pick up high-quality stocks such as Tesla (NASDAQ: TSLA) and Johnson & Johnson (NYSE: JNJ), which are well positioned to thrive in a reopening economy, and can get your portfolio through market ups and downs.
Source Fool.com
