While robust labor markets and retail sales indicate resilience in the economy, this will keep inflation elevated, compelling the Fed to raise rates higher and keep them elevated for longer. This is going to cause markets to go through significant volatility. Amid this, it could be wise to buy fundamentally strong stocks Autodesk, Inc. (ADSK), Forrester Research, Inc. (FORR), and Bridgestone Corporation (BRDCY) with your tax refund for solid risk-adjusted returns.
After witnessing a slowdown from the 2022 peak, inflation showed signs of increasing again this year. The Consumer Price Index (CPI) grew 0.5% month-over-month in January and 6.4% year-over-year, surpassing economists’ expectations of 0.4% and 6.2%, respectively. Eugenio Aleman, a chief economist at Raymond James, said, “It’s clear that the Federal Reserve has more to do in order to continue to slow down inflation.”
