PEP - High-Conviction Buys: 2 Of My Favorite Dividend Growth Stocks Are Now Bargains

2024-06-14 07:30:00 ET

Summary

• Inflation's grip is easing, but the Fed remains cautious. Despite favorable numbers, rate cuts aren't guaranteed, making market conditions tricky for finding bargains.
• Despite market challenges, select companies with strong fundamentals and growth potential offer value. These companies stand out for their robust business models and attractive valuations.
• Investors should focus on high-quality firms that combine stability with growth. Identifying these opportunities can yield significant long-term returns, even in a tough market environment.

Introduction

Since the pandemic and related financial measures caused prices to spike, all eyes have been on inflation and Western central banks. We're now in the fourth year of above-average inflation, with 2021 being the first year of inflation rates that came in well above the Fed's 2% target.

Time flies, doesn't it?

With that said, new inflation numbers and Fed comments are a reason for the market to believe we're close to "normal."

One major factor is the inflation of core goods, which was a major driver of inflation in both 2021 and 2022. That number just hit the lowest year-over-year growth rate in two decades!...

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