U.S. inflation reached highest levels. The U.S. consumer inflation in May 2022 reached the highest levels at 8.6% since December 1981. Inflation continue to rise despite measures by the Fed increasing interest rates over the past few months.
The surge in energy and food prices was a result of the ongoing war between Russia and Ukraine. Sanctions imposed on Russia disrupted oil and gas supply. Food exports were also disrupted which affected the global food supply chain.
Last night, the stock market reacted to the news of uncontrollable inflation. As you can see below, the Dow Jones Industrial Average (DJIA), NASDAQ and S&P 500 all fell.
Well, I am not an economist. The purpose of writing this post is to share some of the opportunities that I am watching in the U.S stock market.
Most of these stock prices are reaching their 52 week low. As a long term investors, I am tempted to scoop up some of these stocks.
Autodesk (NASDAQ: ADSK)
This is the company behind the popular software called AutoCAD. Autodesk develops software products that help companies design architecture, engineering and manufacturing.
Similar to how Adobe dominates the PDF arena, Autodesk is a leader in the software meant for design drawing.
Microsoft Corporation (NASDAQ: MSFT)
Needless to explain, I believe everyone knows about Microsoft. With Office 365 subscription model, the company benefits from recurring revenue.
Microsoft’s cloud business is also always expanding. This American company sure is making big money.
Amazon.com (NASDAQ: AMZN)
With the Amazon Prime program, this company sure is expanding its business in the eCommerce space. With the recent stock split (1 to 20), the share price is more affordable.
Summary of U.S. Inflation Reached Highest Levels
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful – Warren Buffett”
I believe the current inflation woes could last for a while. It is currently unknown what other measures the Fed will take to control inflation besides raising interest rates.
Nevertheless, I will execute my strategy of accumulating these great stocks in tranches.
I am using Tiger Brokers for trading in the US stock market because of its zero commission trading.
What about you? Any stocks are you looking at?