Although inflation is down from its highs, policymakers believe it remains ‘too high’ and have signaled further rate hikes as opposed to their previously announced pause. Given this backdrop, fundamentally sound momentum stocks American Airlines Group Inc. (AAL – Get Rating), Air Canada (ACDVF – Get Rating), and Accel Entertainment, Inc. (ACEL – Get Rating) might be wise investments in June.
According to the latest Bureau of Labor Statistics data, U.S. inflation is coming off its sky-high prices. The Consumer Price Index (CPI) increased 0.1% over the last month and 4% year-over-year in May. However, as it remains twice above the 2% target level, most FOMC participants have agreed on additional interest rate hikes toward the year-end.
In support of this, Fed governor Michelle Bowman added that while inflation has declined substantially, ‘it remains far too high’ and additional policy rate increases will be necessary to bring inflation down to our target over time.
On top of it, a still-booming job market and a resilient economy are intensifying the Fed’s aggression. Nonfarm payrolls increased 339,000 for May, beating Dow Jones estimates for growth of 190,000.
Thus, for those looking to hedge against market uncertainty this year, the above-mentioned stocks possess robust fundamental strength, solid growth, and strong momentum. So, it could be wise to invest in them now.
Furthermore, investors’ interest in momentum stocks is…
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