Unlike Walmart and Target, these stocks tend to do well when inflation is high

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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 .

 

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