What seemed an auspicious start to market proceedings last week ended in a mess of red ink, though this dynamic also serves to support certain stocks to buy to make the most out of recent volatility. Earlier on Dec. 13, CNN reported that inflation cooled more than expected. Of course, this framework set the stage for the Federal Reserve to cool its hawkish monetary policy.
However, on the next day, the central bank raised the benchmark interest rate by 50 basis points. True, this figure came in below the usual 75-basis-point rate hike. However, the decision also demonstrated the Fed’s commitment to tackling inflation through tightening liquidity. In other words, it wants fewer dollars chasing after more goods.
Then, Thursday, Dec. 15 happened. Key retail spending numbers slipped against prior norms, indicating that consumer inflation began taking its toll. In turn, the equities sector melted down. In addition, the fallout continued into Friday. Nevertheless, for those that are seeking stocks to buy on discount, the red ink might be a welcome sight. To be fair, contrarianism presents extraordinary risks. And most of these ideas involve a high probability of volatility. Still, if you can handle it, these are the stocks to buy based on recent market fear.
This post originally appeared at InvestorPlace.