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Jan CPI rose 6.4% vs. 6.2% estimates
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Moo Options Explorer joined discussion · Jun 16, 2022 06:42

Which sectors might perform better in high inflation?

U.S. stocks slipped after May's consumer price index was released. Investors continue to assess the influence of inflation on the Fed's monetary tightening path.
The key inflation reading was 8.6%, higher than March's 8.5% and April's 8.3%. The number indicated that inflation did not reach its peak and is still at a high level in U.S. history. It measures price change for goods and services paid by U.S. consumers.
Which sectors might perform better in high inflation?
Will inflation remain high in 2022? And which sector might perform better in high inflation?


Inflation is expected to remain high

Treasury Secretary Janet Yellen said on June 7 that inflation is expected to remain high. And maybe higher than the Biden administration's forecast that inflation would average 4.7% this year.
At the same time, the World Bank warned that high global inflation would continue. "Global inflation is expected to moderate next year but it will likely remain above inflation targets in many economies," the World Bank said in a report.


If high inflation continues, which sectors might perform better?

According to a study on stock returns over the past 50 years, energy and materials outperform all sectors.
In three inflation-spike periods, energy stocks had the highest annualized returns of 18%. The second was 16.81% for materials stocks. Healthcare had the worst return of minus 8.44%.
Which sectors might perform better in high inflation?
And here is the sector performance in last six months, for reference.
Source: gurufocus, as of June 7
Source: gurufocus, as of June 7

How to use moomoo to check out these sectors?

You can easily check out these sectors by using moomoo.

Buy ETFs:
moomoo has already categorized various types of ETFs. Investors who want to invest in energy sector, can find related ETFs at "Commodity" or "Industry ETF".
e.g. Quotes > Markets > US > ETF > Industry ETF.
Tap the screenshot above to jump to ETF
Tap the screenshot above to jump to ETF

Buy stocks:
Investors who want to buy stocks by industries, can find them in "Industry".
e.g. Quotes > Markets > US > Industry > Oil & Gas E&P > XOM, CVX
Tap the screenshot above to jump to Industry
Tap the screenshot above to jump to Industry
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Source: moomoo, WSJ, worldbank


Disclaimer: No content herein shall be considered an offer, solicitation or recommendation for the purchase or sale of securities, futures, funds or other investment products. It does not take into account your investment objectives, financial situation or particular needs. All information and data, if any, are for reference only and past performance should not be viewed as an indicator of future results. It is not a guarantee for future results. Investments in stocks, options, ETFs, funds and other instruments are subject to risks, including possible loss of the amount invested. The value of investments may fluctuate and as a result, clients may lose the value of their investment. Please consult your financial adviser as to the suitability of any investment.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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