On February 28, investors will get January reading the Personal Consumption Expenses Index (PCE). Spoiler alert: It is expected that inflation will continue to continue in the hot. While many investors may decide to flee the shares completely during inflation times, there are opportunities to own stocks in the sectors that win during inflation.
I will reach these sectors to take in a moment. But before I do, it is important to understand what is going on by inflation. The PCE number is likely to confirm the consumer price index last month (CPI) and the product price index (PPI). That is, instead of approaching the preferred goal of the Federal Reserve, the inflation numbers are likely to rise.
Indeed, according to the Conference Council, American consumers are now expecting inflation over the next 12 months to An increase to 6 % From a previous reading of 5.2 %. You can inform investors by setting feelings aside, but if you are shopping for groceries, you know that prices are not decreased. It is only natural that you are concerned about the potential impact of definitions on grocery prices, as well as strong commodities.
High interest rates affect interest rates as well as inflation
Another concern for stocks is the direction of interest rates. Interest rates rose sharply in 2022 and 2023, partially as a procedure for inflation. Not surprisingly, the shares in the assembly began at the end of 2024 in the hope of multiple price discounts in 2025. But sticky inflation makes it unlikely to determine the federal reserve Reduce prices until later this year. In fact, there are whispers that the Federal Reserve can have to increase rates again.
You see this effect on some of the leading technology shares that drop from concerns about the effect of high borrowing costs on the bottom. If this spending decreases for a sector like artificial intelligence (AI), the sale may become more severe.
The question is whether these money that comes out of technological stocks will remain on the margin or revolve in other sectors. There is some evidence that this happens, and here it may be the sectors to see.
It’s time to get a defensive
A common topic for these sectors is that they are all defensive in nature. This means that companies provide the products and services that consumers and companies need regardless of the state of the economy. These companies generally also have strong mummy budgets and pricing power, which helps them achieve strong profit growth. These companies also use part of these profits to reward shareholders with stock profits.
This makes defensive stocks preferred for investors to buy and celebrate. However, investment in purchase and celebration has been invested over the past decade or more due to low interest rates. Why should you play it safely with the growth of profits from two numbers when there are a number of growth shares that offer proceeds in the market?
However, high inflation makes the purchase and the prepared shares deserve a closer look as investors give priority to safety and stability. This is what the following stock sectors can provide.
Biological Pharmaceutical preparations: Value Biosy Biosy stocks provide valuable and growth possibility
The biological drug sector is divided into two camps. There are small names, in many cases, similar to lottery tickets. They have no medicines on the market, only generate a few revenues and are not profitable. But they seduce investors with the opportunity to obtain the next drug. However, many of these companies are not good investments when inflation and interest rates are high.
Fear today
- 52 weeks
- 153.58 dollars
▼
209.60 dollars
- Profit
- 3.14 %
- P/E ratio.
- 87.11
- The target price
- 208.35 dollars
On the other hand, there are many blue -chip -chip -chip -digit drugs that are excellent options for valuable investors.
Names like abbVie Inc. Nyse: abbv And Merck & Co. Inc. New York: MRK You have a number of commercially available drugs that provide strong revenues and profits.
In addition, they have deep pipelines that ensure future growth.
If the fund’s investment is the most of your style, there are many money to choose from it like Ishares Biotechnology ETF Nasdak: IBB.
However, you will want to make sure that you are considering companies in the Fund’s holdings to ensure that tolerance is matched with risks.
Why are the inventory of the basic materials for consumers flourishing in inflationary environments?
Pepsico today
As of 02/28/2025 04:00 pm
- 52 weeks
- 141.51 dollars
▼
183.41 dollars
- Profit
- 3.53 %
- P/E ratio.
- 22.08
- The target price
- 171.47 dollars
Yes, consumer pins. Many names in this sector are weak in the market, but this is likely to change in 2025.
For this reason, investors can search for names such as Pepsico Inc. Nasdak: Pep And Mondelez International Inc. Nasdak: mdlz.
There are two common features of these companies are the power of pricing, which helps their lower lines, and reliable and growing profit distributions.
If the snack stocks make you uncomfortable in the GLP-1 era, you can also consider names such as Procter & Gamble Co. New York: p Or Kimberly-Clark Corp. Nyse: kmbWhich shares the same features.
Facilities provide reliable profits and protection from inflation
Nextera Energy today
Nextera Energy
As of 02/28/2025 03:59 pm
- 52 weeks
- $ 53.95
▼
86.10 dollars
- Profit
- 3.22 %
- P/E ratio.
- 20.82
- The target price
- 85.85 dollars
Energy shares may still be a difficult investment in 2025, especially if you are considering investing in oil shares.
But this still does not mean that you should stay away from facilities stocks.
Consumers and companies still need to maintain power, and for this reason these companies are reliable artists.
As with many things, the site is concerned when it comes to interest stocks.
One name to be observed is Nextera Energy Inc. New York: NiIt is a company that serves southwest of Florida.
Why do the shares of minerals and mining belong to an enlarged wallet
Neumont today
As of 02/28/2025 03:59 pm
- 52 weeks
- $ 31.67
▼
58.72 dollars
- Profit
- 2.33 %
- P/E ratio.
- 14.62
- The target price
- $ 53.16
Gold is a reliable hedge against inflation. This is one of the reasons that make it one of the best assets in the past 12 months.
This growth is expected to continue in 2025, which means that mineral and mining shares should work well.
The demand for copper is also expected to rise over the next five years due to the need for more databases as well as to update our current electrical network.
And do not forget the silver, which some analysts believe may outperform gold on a percentage.
Neumont Company NYSE: NEM And Freeport-MCMORAN Inc. NYSE: FCX They are two blue chips that must be taken into account if you want to expose the precious metals in your wallet.
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