These stocks do well in inflationary environments

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David Miller News

Jeremy Bryan,Federal Reserve,Chief Investment Officer

Recent economic data in the form of the April Consumer Price Index (CPI) signaled inflation may be starting to cool. Many on Wall Street have begun to adjust...

Many on Wall Street have begun to adjust expectations as to when the Federal Reserve will cut rates, which could catalyze trading.

Bryan expands on Miller's recommendation:"I thought those were phenomenal names, but those are phenomenal names even in a lower or higher inflation environment, right? Microsoft), Visa, Mastercard — these just have really, really good businesses. So I mean they're always they can pass pricing through when inflation is high, but they're also sticky and very high businesses even in bad times and in low inflation times too.

If you're thinking about a company like a mastercard or a Visa, inflation is great for those companies because that's gonna, you know, put more through their networks and that flows right down to the bottom line. I thought those were phenomenal names, but those are phenomenal names even in a lower or higher inflation environment, right?So I mean, they're always, they can pass pricing through when inflation is high, but they're also sticky and very high moat businesses uh even in bad times and and in low inflation times too.

Um And so David, when you, you hear what he said, I mean, would you also sort of get defensive at all in this environment as well or look for companies with more defensive characteristics?You know, we, we actually like some of the more expensive names in health care, some of the G LP one type names, you know, it seems like there's very good chance given the data coming out on G LP ones that you'll continue to see very significant revenue, uh and earnings expansion at those, those names.

 

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