If inflation starts creeping up like the Fed wants, these are the stocks that could benefit

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Bank of America expects a pick up in inflation, and it says a group of stocks that do well with inflation have already been outperforming.

Nick Oxford | Reuters

Bank of America expects a pick up in inflation next year, and it says a group of stocks that do well with inflation have already been outperforming those that don't. On Wednesday, Federal Reserve Chairman Jerome Powell said the central bank will try to get inflation higher, but it will take some effort.

"I think you have to be honest with yourself about inflation these days. There are significant disinflationary pressures around the world. And there have been for a while," he said. "It's not going to be easy to have inflation move up. ... It's going to take some time. It took a long time to get inflation back to 2% in the last crisis."

Since September, the pro-inflation stocks have outperformed those anti-inflation stocks by 13 percentage points as investors anticipate higher prices because of the Fed's actions and the stimulus enacted by Congress. Investors just don't want too much inflation. In a report by Bank of America strategists and economists, they note that a low single digit inflation environment is "Goldilocks" for stocks.

 

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Yeah like gold, approx. 4.5 % we can't pay interest without big tax hikes. Then more inflation and soon we hit 6% and shortly all the arrows are shot, severe depression and maybe global economic collapse. But you won't hear any of this from CNBC.

Must be read inflation

once inflation starts the poor in america will be totally fucked and the rich will join them as the fed has to tighten game over for everyone thanks for playing

So all time highs during a pandemic wouldn’t classify as inflation benefiting stocks?

meanwhile us stocks are rigged by the same cyber criminals while the fed seeks to tax the poor some more to get it to the 1 percent

Someday, people are going to have had enough, & we'll start coming for all you priests of capitalism. Sleep well 😚🤗

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Lazy, stupid SenateGOP senatemajldr don’t get busy helping struggling Americans, inflation will be the least 2 worry about.

Dec. 17, 2020: As of today, we received $4.51/day to get through this pandemic. That's 451 pennies per day.

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