economy
Stagflation risk is rising by the day. Bank of America says these stocks can weather it
These companies could get through a period of low growth and rising inflation.
TL;DR
- Producer prices report shows rising inflation, contributing to fears of low growth.
- Volatility is increasing in the stock market, with VIX levels indicating uncertainty.
- Bank of America suggests 'all weather' strategies focusing on high quality and cash returns for shareholders.
- Value stocks have historically outperformed Growth stocks in rising VIX environments.
- Quality and Cash Return styles are also favored if stagflation risks increase.
- Bank of America identified specific small-cap stocks with strong value and quality characteristics.
- Companies that pay dividends or have lowered share count were prioritized.
- Bread Financial, Progyny, TriNet Group, and Upwork are among the identified stocks.