Concerns over the spread of the COVID-19 Delta variant and rising inflation have evoked investor anxiety over the potential for a significant stock market correction in the near term. Therefore, we think it could be wise to bet on fundamentally sound stocks that could work as a hedge against a market downturn. Owing to their potential to benefit from their respective industry tailwinds, Sysco (SYY), ArcelorMittal (NYSE:MT), Darden (DRI), Whirlpool (WHR), and MKS (MKSI) could be ideal investment bets now. Let’s discuss. The Federal Reserve raised the U.S. inflation forecast to 3.4% in 2021. This, along with a 5.4% increase in the Consumer Price Index over the past 12 months, as of June 2021, is raising investor concerns about the potential for a stock market crash in the near term. Also, rising COVID-19 cases worldwide with the spread of the Delta variant of the COVID-19 virus could put pressure on the stock market in the near term. Therefore, we think that betting on fundamentally sound stocks could be the ticket to hedge current downside risk in an investment portfolio.
Consumer-focused goods, steel, and medical devices industries are poised to grow substantially from demand driven by the economic recovery. So, we believe Sysco Corporation (NYSE:SYY), ArcelorMittal (MT), Darden Restaurants, Inc. (NYSE:DRI), Whirlpool Corporation (NYSE:WHR), and MKS Instruments , Inc. (NASDAQ:MKSI) could be ideal additions to one’s portfolio now.
Their expanded market reach and stable financials make them well-positioned to deliver significant returns in the coming months, dodging the market’s short-term fluctuations.