The rising inflation rates is a key worry in the economic situation right now. With prices going up, dollars don’t go as far – it’s an interaction that threatens to derail consumer spending, the engine of the US economy.
Investors got some clarity in June, however, after the latest FOMC meeting. The Fed had long kept an ‘inflation target’ of 2%; with inflation running more than double that, there was much speculation that the Fed would take an aggressive stance against it. Such a stance would necessarily end the current easy money policies that have made cash and credit readily available for investment. Yet, the Fed appeared to take a middle route, indicating that it will keep rates low for now, but advanced its forecast on when it may start raising interest rates.
The result, according to Willem Sels of investment bank HSBC, is a policy that for now is ‘just right.’ The strategist added, “I think you have the almost Goldilocks scenario again, where you have a Fed that is not behind the curve, but that also doesn’t crush the recovery.”
In a sign that investors agree, the US stock indexes are at or near record highs. Against this backdrop, we’ve used the TipRanks platform to search the market for stocks with serious upside potential – stocks that Wall Street’s analysts are recommending, and that have potential for strong returns.
Here are three that have received recent ‘thumbs up’ from the analysts, who are predicting more than 50% gains on…