The Zhitong Finance App learned that during the month when almost all benchmark stock indices and thematic indices weakened, stagflation trading was particularly prominent. In the US and Europe, sectors that are more vulnerable to the risk of inflation, such as consumer goods and real estate, are under pressure, dragging down the S&P 500 index by more than 4% since April. In contrast, rising oil prices boosted energy stocks.
Despite the strong performance of the US economy over the past few months, current GDP forecasts suggest that the US economy will slow down from the second half of this year.
A Goldman Sachs proxy index provides matchmaking deals for typical stagflation winners and short losers. The index has risen nearly 5% since the beginning of April and is expected to record its biggest monthly gain in a year.
The top ten stocks to go long on the Goldman Sachs Index include Microsoft (MSFT.US), Mastercard (MA.US), and Caterpillar (CAT.US). Stocks that have been shorted include Avinci (ANF.US), Ultra Micro Computer (SMCI.US), and KLAC.US (KLAC.US).
As America's path to a 2% inflation rate is more difficult than expected, prompting investors to lower their expectations of interest rate cuts, people's attention will eventually turn to the impact of economic growth prospects.