Since March 2020, the U.S. equity market has witnessed the shortest bear market in history, followed by a ferocious tech-driven rally and then a sharp rotation from growth to value stocks.
Things may now be on the verge of changing again -- and for the worse. In April, the consumer price index (CPI, a metric used to gauge inflation) rose year-over-year by 4.2% , a stark jump from 2.6% year-over-year increase in March . This has left investors and analysts worried that the U.S. Federal Reserve could tighten its monetary policy earlier than expected. While Treasury Secretary Janet Yellen sees this inflation as transitory, increasing labor costs (wage inflation is sticky) and rising commodity prices seem to point to a more persistent inflation trend.
Against this backdrop, another market crash might now seem inevitable. However, you can safeguard your portfolio from dramatic drawdowns even in such an uncertain environment by picking up some fundamentally strong all-weather stocks -- including American Tower (NYSE: AMT) , Visa (NYSE: V) , and Trulieve Cannabis (OTC: TCNNF) (CNSX: TRUL) .
For further details see:
A Market Crash Is Unavoidable. These 3 All-Weather Stocks Can Keep You Secure