r/valueinvesting
What are some good inflation resistant stocks to buy when interest rates increase?
The author asks for inflation-resistant stock recommendations if the Fed raises rates, suggesting KO, V, WMT, BAC, and MSFT.
- Anticipates potential Fed rate hikes due to strong economic data, prompting a search for defensive assets.
- Highlights classic inflation-resistant sectors like consumer staples, financials, and tech.
- Expresses concern over the macroeconomic environment where rising interest rates could pressure equity valuations.
It seems Fed will hold rates steady this time but there is a good chance it will go up by the end of the year based on ‘higher than expected’ economic reports that will be released in the upcoming weeks.
Some of the ones I can think of:
- Coca Cola (KO)
- Visa (V)
- Walmart (WMT)
- Bank of America (BAC)
- Microsoft? (MSFT)
Thoughts?
Mastercard is doing fine with inflation but the stock price is not doing much
MA is one of the best business in the world , i have so much faith in the business and the stock too , it’s 8% of my port i really hope it falls to 380-400 and im gonna buy like theres no tomorrow
UNH. I've made 100% so far.
I bought 10k UNHG (2x leverage) 2 weeks before the buffet announcement then another 10k the day of. Sold after 70% gain. Then I bought UNH a couple months ago. Up 35%.
Gotcha. I bought a chunk at $285 and am still holding. I’m hoping some rotation into stability will lift us up.
None of those. AVLV etf is the most balanced based on value and profitability.
Avril Lavigne?
I use AVLV for my core. It hasn’t been around long , but has the performance of a large blend with the beta of a value fund. Historically memory stocks have been the part of tech that are considered value stocks. MU is AVLV’s largest position right now. Hopefully AVLV’s health sector weight will cushion what is coming next week.
TIPS
BKR.B and chill.
It's where I'm at right now
JNJ
Gold, as always.
Commodities?
Banks carry the risk of more loans going bad but yeah short term they benefit