Concerns over rising inflation, ongoing supply chain bottlenecks, and the Fed’s tapering could keep the stock market volatile in the near term. Therefore, we think it could be wise to bet on Linde (NYSE:LIN), Eaton (NYSE:ETN), Waste Management (NYSE:WM), and Eni (E). The shares of these companies have generated momentum lately, which they are expected to maintain in the near term because of their strong fundamentals. So. let’s examine these names.Impressive third-quarter earnings, rising consumer spending, and declining jobless claims have helped the major benchmark stock indexes hit record highs lately. However, with inflation hitting a 31-year high, unabated supply chain disruptions, and the Federal Reserve’s decision to start tapering its bond-buying later this month, the stock market might witness significant volatility in the near term. A potential slowdown of China’s economy due to its zero-COVID strategy could hurt the global economic recovery, impacting the stock market further.
Amid this scenario, we think betting on momentum stocks could help dodge short-term market fluctuations. Investors’ interest in momentum stocks is evident in the JPMorgan (NYSE:JPM) U.S. Momentum Factor ETF’s (JMOM) 8.4% returns versus SPDR S&P 500 Trust ETF’s (SPY) 5.9% gains over the past month.
The shares of Linde plc (LIN), Eaton Corporation plc (ETN), Waste Management, Inc. (WM), and Eni S.p.A. (E) have gained momentum lately, which the companies are well-positioned to maintain for the rest of the year. Therefore, we think it could be wise to bet on these stocks now.