HAL - 3 Stocks That Could Soar Under Inflationary Conditions
Markets move in mysterious ways. On one hand, the equity market has sold off on fears that the higher interest rates required to fight inflation will excessively stifle the U.S. economy. Fair enough. But on the other hand, some of the highest-profile stocks in sectors benefiting from inflationary pressures -- companies like copper miner Freeport-McMoran (NYSE: FCX) , insecticide and herbicide producer FMC (NYSE: FMC) , and oil services company Halliburton (NYSE: HAL) -- have also been sold off aggressively.
Let's try to make some sense of what's going on and shed some light on whether these stocks might be good values now.
Simply put, the market has sold off stocks like these because the Federal Reserve's plans to keep hiking interest rates have investors convinced that we're headed for a period of lower growth, but also lower inflation. In addition, some of the speculative fervor may have been taken out of the inflation plays and the commodities that support them due to those rate hikes. In other words, some traders elected to buy commodities until the Fed resolved to act aggressively to fight inflation, at which point they shifted out of them.
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3 Stocks That Could Soar Under Inflationary Conditions