Inflation has been the story of 2022. It has led to an aggressive campaign by the U.S. Federal Reserve to increase interest rates, often by 75 basis points at a time, which is triple the pace of the traditional 25 basis point move.
It's diminishing the spending power of consumers and crushing investor sentiment, which has resulted in a steep 28% decline in the Nasdaq-100 technology index year to date. The real estate sector has suffered particularly badly as rising interest rates tend to dampen house prices. Shares in large-scale brokerage company Redfin (NASDAQ: RDFN) have tumbled 95% from their all-time high as a result.
But there are signs inflation might have peaked around June, when the Consumer Price Index hit a 40-year high. It has stabilized and steadily declined since, which could be a major positive for companies like Redfin in the new year. Here's why investors might want to consider buying the stock now.
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Has Inflation Peaked? 1 Growth Stock Down 95% to Buy Now