The biggest comeback since the Red Sox win in 2004… Inflation is BACK baby! After two months of respite, the CPI print rose 8.3% YoY DESPITE gas prices reducing. It’s hard to blame prices at the pump anymore, with the cost of shelter continuing to spiral upwards as landlords push rents higher.

Food, another true consumer staple, was up 11% YoY as supply chains and commodity input prices have forced the price on labels up. So what does this mean for investors and the U.S. consumer? Well – the Fed certainly can’t ease up on rate hikes, which not only increases discount rates but also reduces economic activity – which will translate to lower earnings for companies.

Higher rent and food costs will be felt keenly by everyone in America too, and as disposable incomes shrink, spending will reduce, slashing company profits even more.

It’s a difficult time to be picking stocks, but here are some areas that tend to hold up well during inflationary and recessionary periods: