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JP Morgan

“Buy Now” US Stocks Recommended by JP Morgan and Goldman

With the threat of stagflation imminent, the stock market has made its worst start in history since the beginning of the year.

But analysts should now invest in stocks of companies that outperform the market with high dividend yields and strong cash flow. It states that.

With rising inflation and rising geopolitical unrest due to Russia’s invasion of Ukraine, most experts warn of the risks of stagflation and recession.

Goldman Sachs Christian Mueller Grisman said stagflation has already arrived, with economic growth slowing and unemployment remaining high amid inflation.

Meanwhile, Jeffreys analysts point out that “cash flow and balance sheets should be the focus” from now on.

High-dividend stocks become cash machines and typically outperform the market during periods of slowing inflation and economic growth.

In addition to healthcare companies such as Pfizer and Medtronic, the company recommends buying consumer goods companies such as Procter & Gambling, Best Buy, Hasbro, and The Home Depot.

Goldman Sachs, meanwhile, recommends stocks that look cheap now, such as pharmaceutical company Moderna, investment manager Blackstone, and semiconductor Micron Technology, which have been beaten up in recent months.

JP Morgan also said it was time to buy and specifically recommended energy-related stocks such as ExxonMobil and Sunlan.

In addition, it predicts a rebound in stocks such as Uber, McDonald’s, Nike, Target, and Estée Laud.

According to a recent memo from JP Morgan, the 2022 S & P 500 fell about 8%, making the market the worst new year after World War II.

In recent years, the S & P 500 has deteriorated to similar levels in the first few months of the year only during the 2008-09 financial crisis and early in the 2020 pandemic.

Recent market volatility creates buying opportunities,” Goldman analysts said in a recent note.

With inflation rising 7.9% year-on-year, the highest level in 40 years, the Federal Reserve raised interest rates by 0.25 points for the first time since 2018 on March 17.

The Fed warned of the “extremely uncertain” impact of Russia’s invasion of Ukraine, saying that rising energy prices “are likely to put further upward pressure on inflation and weigh on economic activity.

The Fed expects to raise rates six more times this year and three times in 2023, up from previous assumptions of three rate hikes per year.