3 Best Stocks to Buy to Fight Inflation

After peaking above $5 per gallon in mid-June, the good news is gas prices are declining and nearing $4 per gallon. Commodity and food prices are coming down too. However, inflation is still near a 40-year high in 2022. The last time we had inflation like this, Ronald Reagan was the President.

What is Inflation?

It is the increase in the prices of goods and services, reducing the buying power of the US dollar or any other currency. For example, when milk prices rise over time, the same $1 buys less. As a result, consumers lose buying power unless their incomes follow suit and increase as well.

Inflation Lowers Stock Market Returns

Besides affecting the profitability of companies, inflation broadly affects the stock market. Most research suggests that high inflation causes low real returns for stocks. Real returns are nominal returns minus inflation. Additionally, inflation causes greater volatility, and the market’s ups and downs in 2022 seemingly confirm this point.

Value Stocks Usually Perform Better

Inflation tends to punish riskier assets. Riskier usually means growth stocks in the stock market, while value stocks are on the other end of the risk spectrum.


The Coca-Cola Company (KO) needs no introduction to most people. It has one of the most recognizable brand names in the world. The company is the world’s largest non-alcoholic beverage company, with a presence in more than 200 countries.

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