These 3 Bellwether CEOs Are Signaling Inflation Ahead
Since the economy began opening back up, many economists have been pointing to inflation as the next big risk to the stock market. In April, prices rose the most since 2008. They accelerated in May and June and finally leveled off in July at a robust 5.4% annual rate. Admittedly, some have been calling for inflation ever since the 2008 financial crisis, but it has never materialized. Now, with prices racing higher coming out of a global pandemic, the U.S. central bank is saying the increase is "transitory".
Many are confused about the term. It doesn't mean prices will retreat. It means that prices will quit rising as fast as they are now. They aren't alarmed, but economists aren't running companies. And how prices affect the bottom line can have implications for how stocks perform over any period of time.
That's why it makes sense to hear how the CEOs of some of the largest companies in America are feeling about rising prices. For HCA Healthcare (NYSE: HCA), Walmart (NYSE: WMT), and JPMorgan Chase (NYSE: JPM), the message seems clear.
Source Fool.com
