While Wall Street apparently seems content with the federal government’s efforts to contain recent banking failures, investors may want to start targeting inflation-resistant stocks to buy just in case. To be sure, the nuances behind bank bailouts are complex. Still, at the root, these lifelines tend to be inflationary. Basically, that money has to come from somewhere.
Further, if the Federal Reserve somehow manages to consistently curb accelerating consumer prices, it may then face another problem: preventing the economy from completely imploding. A lot of good work can be thrown into the trash if monetary policy sparks a severe downturn. Therefore, thinking ahead with inflation hedge stocks may be prudent. Finally, the AP recently warned that the banking crisis isn’t over yet. Moving forward, the question may be how bad will circumstances get before an eventual recovery? Without clear and confident answers, investors may want to load up on these inflation-beating stocks.
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