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If you’re concerned about inflation, you’re not alone. “High and rising inflation has justly become the key preoccupation of investors,” J.P. Morgan strategists, led by Dubravko Lakos-Bujas, wrote in a commentary.

“It is affecting consumer spending, business outlook, politics and, most importantly, the direction of monetary policy. While we expect the cyclical recovery to continue, …  we acknowledge that the path of future inflation is uncertain.”

Consumer prices soared 7.5% in the 12 months through January. While J.P. Morgan anticipates the consumer price index will slide to 3.9% by year-end, that’s almost double the Federal Reserve’s long-term target, and it assumes the Fed’s policy tightening doesn’t cause a recession. Given uncertainty in the economy, “the risk of policy error has increased significantly,” the strategists said.

They created a list of stocks that are likely to outperform the market and a list likely to underperform when inflation fears or expectations are on the rise.

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The stocks are screened partly on the basis of their correlation with the yield curve, the U.S. dollar inflation swap forward, the U.S. breakeven rate and the S&P GSCI commodity index.

Among the stocks on the outperformers list are Bank Of America  (BAC) – Get Bank of America Corp Report, Boeing  (BA) – Get Boeing Company Report, Exxon Mobil  (XOM) – Get Exxon Mobil Corporation Report, mining company Freeport-McMoRan  (FCX) – Get Freeport-McMoRan, Inc. Report, General Electric  (GE) – Get General Electric Company Report, American Airlines  (AAL) – Get American Airlines Group, Inc. Report, and Avis Budget  (CAR) – Get Avis Budget Group, Inc. Report.

Among the stocks on the underperformers list are Microsoft  (MSFT) – Get Microsoft Corporation Report, pharmaceutical company Moderna  (MRNA) – Get Moderna, Inc. Report, Walmart  (WMT) – Get Walmart Inc. Report, Johnson & Johnson  (JNJ) – Get Johnson & Johnson Report, Verizon Communications  (VZ) – Get Verizon Communications Inc. Report, Procter & Gamble  (PG) – Get Procter & Gamble Company Report and video meeting platform Zoom Video Communications  (ZM) – Get Zoom Video Communications, Inc. Class A Report.

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