Persistent inflation and fears over the central bank’s tightening are testing the resilience of many investors of late. With uncertainty hanging in the air, a portfolio of quality stocks that generate strong returns could help investors weather market volatility.
Thus, investors could consider investing in fundamentally strong stocks Johnson & Johnson (JNJ), Abbott Laboratories (ABT), and Humana Inc. (HUM), which could act as a defensive hedge in an uncertain market. Let’s look closer at their fundamentals and evaluate the potential of these stocks.
The Consumer Price Index (CPI) declined from 6.4% to 6% year-over-year in February, continuing an eight-month trend of declining annual inflation. However, the collapse of the Silicon Valley Bank paves a complex road ahead for the Fed to reach its target 2% level.
The Federal Reserve is at the crossroads of following through with its oft-stated intention to keep raising rates until it’s convinced inflation is declining toward acceptable levels or to step back to assess the current financial situation.
The labor market remained hot, as non-farm payrolls increased by 311,000 in February, well ahead of the Wall Street estimate for…
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