Trending: Investing in Bitcoin / 5 reasons to invest in Amazon / Investing in the Metaverse
Sunday, March 19, 2023
INVESTOR TIMES
  • Home
  • News
    How much will the fight with Kanye West cost Adidas?

    How much will the fight with Kanye West cost Adidas?

    TD Cowen: SVB’s fall does not threaten the stability of the banking system

    TD Cowen: SVB’s fall does not threaten the stability of the banking system

    Public investment in Ireland will be only for sustainable businesses

    Public investment in Ireland will be only for sustainable businesses

    Jerome Powell warns Fed could raise rates further

    Jerome Powell warns Fed could raise rates further

    JPMorgan: “zero-day” options contracts would sink SPX

    JPMorgan: “zero-day” options contracts would sink SPX

    Used cars prices rise unusually in the U.S

    Used cars prices rise unusually in the U.S

    Chinese mobile manufacturers want to go after Apple and Samsung

    Chinese mobile manufacturers want to go after Apple and Samsung

    ACS to build a battery plant for Panasonic in the U.S

    ACS to build a battery plant for Panasonic in the U.S

    Carvana could be on the verge of bankruptcy

    Carvana could be on the verge of bankruptcy

  • Markets
    Pontegadea continues to buy real estate: now the target is London

    Pontegadea continues to buy real estate: now the target is London

    BMW adds to profits thanks to Rolls Royce and Mini

    BMW adds to profits thanks to Rolls Royce and Mini

    Puma achieves record sales in last year with Gulden as CEO

    Puma achieves record sales in last year with Gulden as CEO

    Nike and Decathlon lead as the world’s largest sports retailers

    Nike and Decathlon lead as the world’s largest sports retailers

    Walmart unstoppable: sells U$S 611 billion in 2022

    Walmart unstoppable: sells U$S 611 billion in 2022

    Experts: recession to come at the end of rate hike cycle

    Experts: recession to come at the end of rate hike cycle

    Is it time to bet on tech stocks again?

    Is it time to bet on tech stocks again?

    Is it better to invest in Stellantis or in Ford and GM?

    Is it better to invest in Stellantis or in Ford and GM?

    U.S. housing market could continue to decline

    U.S. housing market could continue to decline

  • Investing
    Hedging hurts more than stock market declines, study says

    Hedging hurts more than stock market declines, study says

    How to manage risk in times of stock market volatility

    How to manage risk in times of stock market volatility

    Gold investment price

    Why a physical gold IRA is becoming a hot investing topic

    Home Depot announces dividend increase

    Home Depot announces dividend increase

    The fall in Alibaba’s earnings softens

    The fall in Alibaba’s earnings softens

    Is it better to invest in Stellantis or in Ford and GM?

    Is it better to invest in Stellantis or in Ford and GM?

    The biggest investment mistakes made by Warren Buffett

    The biggest investment mistakes made by Warren Buffett

    Which stocks are attractive for investing in IoT and robotics

    Which stocks are attractive for investing in IoT and robotics

    Mixed results for Uber Technologies in 2022

    Mixed results for Uber Technologies in 2022

  • Technology
    Why Americans want to remove Instagram from their phones

    Why Americans want to remove Instagram from their phones

    Tesla prepares a Model Y update: what we know about “Juniper”

    Tesla prepares a Model Y update: what we know about “Juniper”

    Li-Cycle to recycle lithium batteries in Rochester

    Li-Cycle to recycle lithium batteries in Rochester

    Is it time to bet on tech stocks again?

    Is it time to bet on tech stocks again?

    Amazon goes all-in on live sports streaming

    Amazon goes all-in on live sports streaming

    Bing’s AI has “lost its mind”

    Bing’s AI has “lost its mind”

    ChatGPT’s Chinese competitor to be launched in March

    ChatGPT’s Chinese competitor to be launched in March

    Alphabet board confesses doubts about Bard

    Alphabet board confesses doubts about Bard

    Advantages and disadvantages of AI, according to Bill Gates

    Advantages and disadvantages of AI, according to Bill Gates

  • CryptocurrenciesTRENDING
    Circle’s exposure to SVB is $3.3 billion

    Circle’s exposure to SVB is $3.3 billion

    Crypto crisis drives Silvergate into bankruptcy

    Crypto crisis drives Silvergate into bankruptcy

    Censorship resistance: what is it and why is it so important in the crypto industry?

    Censorship resistance: what is it and why is it so important in the crypto industry?

    Forbes claims Binance is in trouble, Zhao denies it

    Forbes claims Binance is in trouble, Zhao denies it

    SEC reportedly preparing a battle against stablecoins

    SEC reportedly preparing a battle against stablecoins

    U.S. regulatory pressure on cryptomarket increases

    U.S. regulatory pressure on cryptomarket increases

    What is Crypto Staking and why is the SEC regulating these services?

    What is Crypto Staking and why is the SEC regulating these services?

    Shanghai: a glimpse of Ethereum’s next update

    Shanghai: a glimpse of Ethereum’s next update

    Manchester City token collapses for this reason

    Manchester City token collapses for this reason

S&P 500 (USA) 
3.916.64  43.64  1.10%  
NASDAQ Composite (USA) 
11.630.51  86.79  0.74%  
Dow Jones (USA) 
31.861.98  384.62  1.19%  
FTSE 100 (United Kingdom) 
7.335.40  74.63  1.01%  
EURO STOXX 50 (Europe) 
4.064,99  51,99  1,00%  
Nikkei 225 
27.249.02  84.77  0.31%  
VIX 
25.51  2.52  10.96%  
Bitcoin (USD) 
27.790.64  657.04  2.42%  
Ethereum (USD) 
1.779.38  1.41  0.08%  
  • Home
  • News
    How much will the fight with Kanye West cost Adidas?

    How much will the fight with Kanye West cost Adidas?

    TD Cowen: SVB’s fall does not threaten the stability of the banking system

    TD Cowen: SVB’s fall does not threaten the stability of the banking system

    Public investment in Ireland will be only for sustainable businesses

    Public investment in Ireland will be only for sustainable businesses

    Jerome Powell warns Fed could raise rates further

    Jerome Powell warns Fed could raise rates further

    JPMorgan: “zero-day” options contracts would sink SPX

    JPMorgan: “zero-day” options contracts would sink SPX

    Used cars prices rise unusually in the U.S

    Used cars prices rise unusually in the U.S

    Chinese mobile manufacturers want to go after Apple and Samsung

    Chinese mobile manufacturers want to go after Apple and Samsung

    ACS to build a battery plant for Panasonic in the U.S

    ACS to build a battery plant for Panasonic in the U.S

    Carvana could be on the verge of bankruptcy

    Carvana could be on the verge of bankruptcy

  • Markets
    Pontegadea continues to buy real estate: now the target is London

    Pontegadea continues to buy real estate: now the target is London

    BMW adds to profits thanks to Rolls Royce and Mini

    BMW adds to profits thanks to Rolls Royce and Mini

    Puma achieves record sales in last year with Gulden as CEO

    Puma achieves record sales in last year with Gulden as CEO

    Nike and Decathlon lead as the world’s largest sports retailers

    Nike and Decathlon lead as the world’s largest sports retailers

    Walmart unstoppable: sells U$S 611 billion in 2022

    Walmart unstoppable: sells U$S 611 billion in 2022

    Experts: recession to come at the end of rate hike cycle

    Experts: recession to come at the end of rate hike cycle

    Is it time to bet on tech stocks again?

    Is it time to bet on tech stocks again?

    Is it better to invest in Stellantis or in Ford and GM?

    Is it better to invest in Stellantis or in Ford and GM?

    U.S. housing market could continue to decline

    U.S. housing market could continue to decline

  • Investing
    Hedging hurts more than stock market declines, study says

    Hedging hurts more than stock market declines, study says

    How to manage risk in times of stock market volatility

    How to manage risk in times of stock market volatility

    Gold investment price

    Why a physical gold IRA is becoming a hot investing topic

    Home Depot announces dividend increase

    Home Depot announces dividend increase

    The fall in Alibaba’s earnings softens

    The fall in Alibaba’s earnings softens

    Is it better to invest in Stellantis or in Ford and GM?

    Is it better to invest in Stellantis or in Ford and GM?

    The biggest investment mistakes made by Warren Buffett

    The biggest investment mistakes made by Warren Buffett

    Which stocks are attractive for investing in IoT and robotics

    Which stocks are attractive for investing in IoT and robotics

    Mixed results for Uber Technologies in 2022

    Mixed results for Uber Technologies in 2022

  • Technology
    Why Americans want to remove Instagram from their phones

    Why Americans want to remove Instagram from their phones

    Tesla prepares a Model Y update: what we know about “Juniper”

    Tesla prepares a Model Y update: what we know about “Juniper”

    Li-Cycle to recycle lithium batteries in Rochester

    Li-Cycle to recycle lithium batteries in Rochester

    Is it time to bet on tech stocks again?

    Is it time to bet on tech stocks again?

    Amazon goes all-in on live sports streaming

    Amazon goes all-in on live sports streaming

    Bing’s AI has “lost its mind”

    Bing’s AI has “lost its mind”

    ChatGPT’s Chinese competitor to be launched in March

    ChatGPT’s Chinese competitor to be launched in March

    Alphabet board confesses doubts about Bard

    Alphabet board confesses doubts about Bard

    Advantages and disadvantages of AI, according to Bill Gates

    Advantages and disadvantages of AI, according to Bill Gates

  • CryptocurrenciesTRENDING
    Circle’s exposure to SVB is $3.3 billion

    Circle’s exposure to SVB is $3.3 billion

    Crypto crisis drives Silvergate into bankruptcy

    Crypto crisis drives Silvergate into bankruptcy

    Censorship resistance: what is it and why is it so important in the crypto industry?

    Censorship resistance: what is it and why is it so important in the crypto industry?

    Forbes claims Binance is in trouble, Zhao denies it

    Forbes claims Binance is in trouble, Zhao denies it

    SEC reportedly preparing a battle against stablecoins

    SEC reportedly preparing a battle against stablecoins

    U.S. regulatory pressure on cryptomarket increases

    U.S. regulatory pressure on cryptomarket increases

    What is Crypto Staking and why is the SEC regulating these services?

    What is Crypto Staking and why is the SEC regulating these services?

    Shanghai: a glimpse of Ethereum’s next update

    Shanghai: a glimpse of Ethereum’s next update

    Manchester City token collapses for this reason

    Manchester City token collapses for this reason

INVESTOR TIMES
Home Featured

With inflation in recession, what stocks should you consider?

The November inflation report showed lower-than-estimated figures, which revived hopes among investors.

Alejandro Gil by Alejandro Gil
12/16/2022 - 7:49
in Featured, Markets
Reading Time: 4 mins read
Share on FacebookShare on TwitterShare on LinkedIn
  • Hopes seem to be revived in the market on the possibility that the consumer price index has peaked.
  • Inflation lost ground during the month of November and stocks continue the week’s positive streak.
  • Some stocks emerge as good options amid a new low in inflation.

Based on the movement of stocks over the past few days, the pullback in U.S. inflation was already in sight. Prior to the release of the November consumer price index (CPI) figures, the markets were already in the green. As expected, when it became known that prices fell more than expected, investors’ profits rose.

Thus, during the last year ending November 2022, inflation in the world’s leading economy fell to 7.1%. According to Wall Street, it is expected to stand at approximately 7.3%. This performance put hopes for a spike in inflation back on investors’ minds. The result was manifested in large-cap stocks, which began to gain ground in an accelerated manner.

In addition, core inflation (that which does not include volatile products) rose less than expected. In this regard, analysts had expected it to stand at 6.1%, with an annualized increase of 0.3%. In contrast, the result was 6% and 0.2% in the same order. However, some analysts call for sanity and believe that the behavior of the economy should not lead investors to assume that inflation has reached its ceiling and that it will continue to decline in the coming months.

What does the inflation pullback mean for stocks?

The pullback in inflation is one of the few pieces of good news for investors after a year of beatings. Rising prices prompted central bank authorities to undertake a tight monetary policy. The latter resulted in the sharp rise in interest rates since March. The high cost of money had an almost immediate impact on companies’ revenues and, as a consequence, on their stock market prices.

For shareholders, this was one of the worst years in decades. Billions of dollars evaporated from the market as a result of the sharp falls in the main benchmark indexes of the New York Stock Exchange. Technology stocks were hit particularly hard and titans such as Meta, Netflix and others experienced real “bloody baths”.

Now that prices have come down slightly, investors seem to be catching a breath and dreaming of a new upswing. Although prices have come down with high hopes, one should wait for several months of behavior to determine if the downtrend is clear. If so, the Fed could lift its monetary policy foot off the accelerator sooner. At the other extreme, if inflation brings bad news for next year, it could be a given that 2023 will be a complex year including a painful recession.

Either way, the pullback in inflation seems to be a glimmer of hope that prices have peaked. Although unlikely, at least a year-end rally would be warranted. In that scenario, Morgan Stanley’s bets that the stock rebound was “dead” would also be losing validity.

Receding inflation could allow markets to break out again
The U.S. Federal Reserve (Fed) is a crucial player in the midst of this scenario. On its intervention depends whether inflation will be defeated and, according to its critics, its careless attitude allowed prices to be placed at a 40-year high. Image: Thehill.com

Growth stocks on the radar

The fact that the CPI downtrend will continue through the months of 2023 could be positive news for stocks. The latter contemplates that investors who took risks during the last leg of 2022 could be the big winners. However, not all is said and done and prices could once again return to the upward spiral to the chagrin of the risk equity markets.

Defensive stocks would also be negatively affected if the downward inflation trend continues. Finding a middle ground in such a context is not an easy task for traders, who must move their chips with the stocks best prepared for the possible scenarios in the coming months.

Among the stocks to be considered by analysts are the so-called growth or cyclical stocks. This term has to do with those assets that perform favorably during times of advantage, but in periods of crisis they go to the floor. Among these, Nasdaq stocks stand out, which bore the brunt during 2022. Examples such as Meta or Netflix are some that show the magnitude of the fall of this type of stock.

Precisely, those are some of the options that could have a positive 2023 for investors. Be that as it may, it all depends on whether the current pullback in inflation holds. For now, all indications are that the Fed’s aggressive actions are doing the job. Recent rate hike cycles have been between 50 and 75 basis points.

Here are some stocks to consider

As already highlighted, growth stocks are the most likely to rise should CPI continue to fall. Some of the stocks that could make the list of profitable bets are Meta, Intel and PayPal. Shares of firms such as Nvidia and shares of electric car manufacturers could also be counted in that group.

At the same time, commodities would also be in the limelight as potential generators of high returns for investment capital. It is worth considering that the benefit of commodities in the face of a sharp drop in inflation is due to the fact that commodity prices are measured against the US dollar.

Considering this last group of assets, the shares of companies such as Exxon Mobil, Chevron or gold miners such as Newmont would be options to consider. Although the current decline in inflation is not a fact that will determine an irrevocable fall in the CPI in the coming months, it is no less certain that the Fed’s measures will sooner or later force this scenario.

This would be an idyllic scenario for many investors who have seen a large part of their capital vanish. The continued fall in prices could revive interest in some sectors that have been on the ropes this year. These include betting on metaverse stocks and other technologies such as renewable energy and decentralized finance.

Crypto market reacts positively to IPC drop
As equity markets react to inflation figures, so do cryptocurrency prices. At the time of writing, the value of BTC managed to break out of a danger zone that threatened to take it to $15,000. Image credit: Tradingview.com

Cryptocurrencies are a tempting option amid the inflation pullback

Another big money market is cryptocurrencies. The problem with this one, is that its movements are so volatile that they could go beyond the risk tolerance that many investors have after a terrible year. However, judging by the performance of these digital currencies, they have a close correlation with Nasdaq stocks.

The latter could mean that a clear downtrend in the CPI to the benefit of tech stocks would also do the same for cryptocurrencies. For example, it is worth noting that in recent days the price of these assets has improved significantly. For example, Bitcoin, the most important of the virtual currencies in terms of market capitalization, rose above $18,000 dollars per unit.

At the same time, one cannot ignore the fact that the crypto market has some particularities that could distance it from the correlation with Nasdaq. Such is the case of the “winter” suffered by these currencies, which is not exclusively due to macroeconomic conditions. It has deep roots in the constant frauds, bankruptcies, robberies and insecurities in the business. At the time of closing, the price of BTC was down again amid new news affecting Binance and its role in the FTX bankruptcy.

While receding inflation may bring good news to cryptocurrency investors, there are some castles that are crumbling. The case of FTX is one of them and the importance of it lies in the fact that the consequences of the fall of that exchange would still be in process. Many companies in the sector are dancing on a tightrope and strict regulations seem to be on the way.

Other stocks that could make bigger jumps, according to TipRanks:

  • Coca-Cola.
  • Walmart.
  • Merck.
  • General Mills.

This content is for informational purposes only and should not be assumed to be investment advice.

Tags: inflationMarketrecessionsharesStock exchange

Related articles

Pontegadea continues to buy real estate: now the target is London
Markets

Pontegadea continues to buy real estate: now the target is London

by Pablo Petovel
— March 16, 2023
BMW adds to profits thanks to Rolls Royce and Mini
Markets

BMW adds to profits thanks to Rolls Royce and Mini

by Pablo Petovel
— March 15, 2023
Puma achieves record sales in last year with Gulden as CEO
Markets

Puma achieves record sales in last year with Gulden as CEO

by Pablo Petovel
— March 14, 2023
Nike and Decathlon lead as the world’s largest sports retailers
Markets

Nike and Decathlon lead as the world’s largest sports retailers

by Pablo Petovel
— March 9, 2023
Walmart unstoppable: sells U$S 611 billion in 2022
Markets

Walmart unstoppable: sells U$S 611 billion in 2022

by Pablo Petovel
— March 3, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Last published articles

How much will the fight with Kanye West cost Adidas?
News

How much will the fight with Kanye West cost Adidas?

by Pablo Petovel
— March 16, 2023
Pontegadea continues to buy real estate: now the target is London

Pontegadea continues to buy real estate: now the target is London

by Pablo Petovel
  March 16, 2023

BMW adds to profits thanks to Rolls Royce and Mini

BMW adds to profits thanks to Rolls Royce and Mini

by Pablo Petovel
  March 15, 2023

TD Cowen: SVB’s fall does not threaten the stability of the banking system

TD Cowen: SVB’s fall does not threaten the stability of the banking system

by Alejandro Gil
  March 15, 2023

Hedging hurts more than stock market declines, study says

Hedging hurts more than stock market declines, study says

by Alejandro Gil
  March 15, 2023

Facebook Twitter LinkedIn Telegram RSS

ABOUT INVESTOR TIMES

INVESTOR TIMES is an independent publication of economic, finance and investment content, owned and operated by Altas Ventures.

MORE ABOUT US

  • Our team
  • Work with us
  • Advertise on IT
  • Contact
  • Corporate information
  • Terms of Use
  • Cookies Policy
  • Privacy Policy

INTERNATIONAL EDITIONS

Investor Times in English

Investor Times en Français

Investor Times in Deutsch

Investor Times in Italiano

Investor Times em Português

Investor Times po Polsku

Investor Times на русском языке

El País Financiero (edición en Español)

© ATLAS VENTURES SLU, all rights reserved. Any information contained in INVESTOR TIMES is for educational and/or informational purposes only, it is not financial and/or investment advice. INVESTOR TIMES may obtain economic retribution by recommending services or products of third parties. INVESTOR TIMES does not accept, nor will it accept in the future, subsidies or funds from Governments, political parties or public institutions.

No Result
View All Result
  • Home
  • News
  • Markets
  • Investing
  • Cryptocurrencies
  • Technology

  •  EXCLUSIVE  3 Russian men are the real perpetrators behind Juicy Fields, says Glanse

     NEW  Compound Interest Calculator

     TRENDING 
    Investing in Bitcoin Investing in the Metaverse 5 reasons to invest in Amazon

© ATLAS VENTURES, all rights reserved.