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13 handpicked stocks

Stagflation Standouts

This collection features stocks and assets carefully selected by professional analysts to potentially outperform during stagflation periods. These defensive investments have already shown strength while the broader market struggles, making them worth consideration for economic uncertainty ahead.

Author avatar

Han Tan | Market Analyst

Published on May 19

Your Basket's Financial Footprint

Summary of the basket's market capitalisation and investor takeaways based on large-cap concentration.

Key Takeaways for Investors:
  • Large-cap concentration suggests generally lower volatility and returns that tend to track broad market movements rather than high-growth surges.
  • Best used as a core, long-term holding to provide defensive exposure within a diversified portfolio, not a speculative position.
  • Expect steady, long-term value accumulation rather than rapid, short-term gains; growth will likely be moderate.
Total Market Cap
  • GLD: $51.72B

  • COST: $415.48B

  • WMT: $846.88B

  • Other

About This Group of Stocks

1

Our Expert Thinking

Stagflation combines slow economic growth with persistent high inflation, creating challenges for many investments. We've identified assets from Bank of America's Stagflation basket that historically perform well in these conditions, focusing on essential industries that maintain demand regardless of economic conditions.

2

What You Need to Know

These defensive assets have already outperformed the broader market in 2025, rising over 3% while the S&P 500 fell more than 4%. This collection includes gold and companies in utilities, real estate, healthcare, and consumer staples – sectors providing goods and services people need regardless of economic conditions.

3

Why These Stocks

Each asset was selected based on its historical performance during stagflationary periods and its defensive characteristics. These are primarily S&P 500 companies representing industries that provide essential products and services, along with gold, which often serves as a hedge against inflation and economic uncertainty.

Why You'll Want to Watch These Stocks

⚖️

Bucking the Downward Trend

While the S&P 500 has dropped over 4% this year, these stagflation-resistant picks have gained more than 3%. This performance gap could widen if economic conditions continue to deteriorate while inflation remains stubborn.

🛡️

Recession-Resistant Essentials

These companies provide products and services people need regardless of economic conditions. From utilities and healthcare to groceries and gold, they represent industries that maintain demand even when consumers tighten their belts.

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Fed Forecasts Signal Opportunity

The Federal Reserve just lowered its 2025 growth forecast while raising inflation expectations, creating precisely the conditions these assets are selected to thrive in. This early positioning could benefit investors before stagflation concerns become widespread.

Get the full story on this Basket. Read our detailed article on its risks and potential.

Read Full Insight

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