The consumer price index rose 5% annually and 0.1% sequentially in March, with annual inflation dropping to its lowest rate since May 2021. The Fed’s restrictive monetary policy is starting to pay off as inflation has declined from the peak of 9.1% in June last year. Although significant strides have been taken to bring inflation down, it remains above the Fed’s comfort level.
With the likelihood of further rate hikes this year, concerns of a recession loom. Amid this backdrop, it could be wise to diversify one’s portfolio with fundamentally strong stocks Merck & Co., Inc. (MRK), Archer-Daniels-Midland Company (ADM), and Open Text Corporation (OTEX).
