Nobody was really surprised when the August consumer price index showed yet another month of rising prices. While the headline number has decreased since June (mostly due to lower gasoline prices), consumers are still getting stung by inflation. With top Wall Street firms raising their September federal funds increase forecasts to 75 basis points last week, and the year-end terminal rate to 4.00% to 4.25%, it is a safe bet that it will be rough for stock investors in the near term.
Mortgage applications have dropped to their lowest levels in 22 years, as interest rates are the highest to buy a home since 2008. That is a sure sign that clouds are forming. So, what should investors do now? Seek out companies that can continue to do business as usual, those that will not be stung by inflation and will pay big dividends, and that have stocks rated Buy by top Wall Street firms. We found seven that make good sense now.
This post originally appeared at 24/7 Wall St.