When rising costs crimp corporate profits and curb consumer demand, some stocks have a record of performing well during periods of rapid inflation.
As rising costs crimp corporate profits and curb consumer demand, certain stocks have a track record of performing well during periods of faster inflation. Inflation is at generational highs. The April consumer price index jumped 8.3% from the prior year, about a 40-year high. A pair of disappointing quarterly reports this week from big-box retailers revealed the effects of inflation on corporate results.
They tend to benefit from rising commodity prices, which have climbed this year as the war in Ukraine disrupts global supplies. Occidental Petroleum is one energy name to make Bank of America's pro-inflation list. The stock is the best performing in the S & P 500 this year by far, more than doubling in 2022. The oil giant is also a favorite of Warren Buffett's Berkshire Hathaway , which built a $12 billion stake in Occidental as of the end of the first quarter .
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stocks Making the Biggest Moves Premarket: Target, Walmart, Carrier Global and OthersThese are the stocks posting the largest moves before the bell.
Read more »
Walmart sounds the inflation alarm, and its stock tumblesWalmart said Tuesday that higher costs and supply chain constraints squeezed its profit during its latest quarter. Walmart also slashed its profit outlook for the year, signaling that it expects inflation to continue to hurt its business.
Read more »
5 Things to Know Before the Stock Market Opens WednesdayU.S. stock futures dropped Wednesday as rising inflation slammed another retailer.
Read more »
Verizon raises fees for wireless service, adds new charge for businessesThe telecommunications giant's moves come as inflation continues to run near a 40-year high.
Read more »
Verizon raises fees for wireless service, adds new charge for businessesThe telecommunications giant's moves come as inflation continues to run near a 40-year high.
Read more »