The US federal reserve has recently increased interest rates in a ploy to combat the high inflation that is tearing through the United States. After fighting the economic damages from COVID-19, interest rates rose for the first time since 2018 to slow inflation. Pushing stocks lower in the process. Keep reading to find out the best 3 stocks right now.
With many investors losing money in these times, trends and past performance of stocks are more valuable than ever. Generally, during such economic climates, the financial sector is in a pole position to benefit. As rates increase, the profit margins of financial firms increase. This is because they can raise rates on credit cards and loans, resulting in higher revenues. However, during hard economic times, financial companies run the risk of more defaults on loans and other payments.
In the long run, however, financial stocks are one of the best places to put your money. Let’s look at the best 3 stocks to buy right now with rising interest rates and high inflation:
Bank of America (BAC)
Bank of America is a world-leading financial institution that serves individuals and businesses around the world. They offer banking, investment management and other services to their customers. It is the 2nd largest US bank, second to JP Morgan Chase.
During periods of rising interest rates, Bank of America will benefit as it earns more money than it must pay on its deposits. This may translate into higher profit margins for BAC and as a result, a higher share price in the future.
The chief financial officer of the Bank of America, Alastair Borthwick, said that Bank of America is still on track for an above-average year of lending growth and, although the economic environment is challenging for the investment banking division, trading revenues are on track to increase to 15% in the second quarter (up from 5%).
So, if you’re looking for a solid stock, with great growth potential in this climate, Bank of America could be the one for you.
Find out what investors think about BAC here!
Visa is a payment technology company that is the market leader in digital payments, facilitating payments from around the world. Chances are if you look in your wallet there will be a card with the Visa logo there!
During periods of high inflation, Visa has benefitted from higher revenue since with the cost of goods increasing, transaction fees to Visa rise with it. Visa is on track for strong growth in 2022.
Not only is Visa an opportunity to benefit from rising share prices, but Visa also offers consistent dividend payments to its shareholders. And did so through the COVID-19 pandemic. Over the past 5 years, Visas’ dividend has grown, on average, by 20% each year.
So, if you’re looking for a stock with great growth potential and consistent dividend payments, Visa could be the one for you.
Find out what investors think about Visa here!
Chevron is a multinational energy corporation. They are involved in refining, marketing, and transporting a range of high-quality refined products such as gasoline.
A study by Wells Fargo found that during periods of high inflation the price of oils tends to increase by more than 40%. These price rises in oil will directly impact Chevron for the better.
Having operations in the energy sector too, rising prices in energy will further benefit Chevron. And if oil prices were to fall, they still could generate strong profits from other sectors.
The American businessman and CEO of Berkshire Hathaway added 316% of CVX stock to his portfolio earlier this year according to dataroma.com. So, if that’s not a good sign, I don’t know what is!
So, if you’re looking for a stock with great growth potential and one that is backed by Warren Buffet, Chevron could be the one for you.
Find out what investors think about Chevron here!
TrendyToros has no position in any of the companies mentioned. Views expressed on the companies and assets mentioned in this article are those of the writer and not TrendyToros Ltd.