Concerned About Inflation? Buy These 4 Stocks

The past year has been a wild one. The coronavirus pandemic dramatically impacted our lives, bringing with it a drastic increase in fiscal spending. Since last March, Congress passed the $2.2 trillion CARES Act; an additional $900 billion of relief aid in December; and most recently the American Rescue Plan, totaling another $1.9 trillion in stimulus.

This massive fiscal spending has some market watchers concerned about inflation. In January, Fannie Mae warned about the potential effects inflation could have on the economy in 2021 and beyond, and former Treasury Secretary Larry Summers and former International Monetary Fund Chief Economist Olivier Blanchard have expressed concerns as well.

When inflation becomes a problem, one way the Federal Reserve responds is by raising interest rates to cool down the economy -- and some companies can weather a higher-interest rate environment better than others. Because inflation is hard to predict, it is important to focus on well-run companies that navigated the global pandemic well and would also perform well with rising interest rates. Here are four great companies for you to consider.

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Source Fool.com