2 Top Growth Stocks to Buy in November
Since the beginning of the pandemic, the Federal Reserve and Congress have collectively injected nearly $9 trillion into the U.S. economy through quantitative easing (i.e. the purchase of government-backed bonds from the open market) and stimulus payments. In both cases, these measures were meant to prevent a prolonged recession and boost consumer spending.
In hindsight, some investors are wondering if that was too much stimulus. A massive increase in the cash supply, especially in the context of slow economic growth, is a key driver of inflation. In fact, earlier this month, the Labor Department said the Consumer Price Index -- a proxy for inflation -- jumped 5.4% over the last 12 months. And now that global supply chains are in disarray, will things get worse?
No one knows the answer to that question for sure. But that doesn't mean you can't find good investments. Businesses that make money by processing payments tend to be somewhat resistant to inflation, because rising prices should actually boost revenue. Building on that idea, MercadoLibre (NASDAQ: MELI) and Square (NYSE: SQ) look like smart buys right now. Here's what you should know.
Source Fool.com
