The Consumer Price Index jumped 8.5% in March, hitting a 40-year high. Also, worries about tight supplies in the absence of any measurable progress in peace talks between Russia and Ukraine have been driving oil prices up. Since most U.S. recessions over the past few decades have been preceded by an increase in oil prices, many economists expect the economy to suffer a recession this year.
Therefore, investing in safe-haven assets should gain prominence in the coming months. While one could invest in precious metals like gold to weather a recession, betting on fundamentally sound dividend aristocrat stocks could be a great strategy too. Investors’ interest in the dividend aristocrats is evident in the ProShares S&P 500 Dividend Aristocrats ETF’s (NOBL) 6.8% returns over the past month.
