
The January 2022 Consumer Price Index (CPI) revealed that year-over-year inflation rose to 7.5%. This topped analysts expectations and is the highest rate in forty years.
During times of high inflation, value stocks typically outperform growth stocks. As the inflationary pressure is expected to persist, betting on quality bargains could be rewarding. Investors’ interest in value stocks is evident from the SPDR Series Trust SPDR Portfolio S&P 500 Value ETF’s (SPYV) 12.8% returns over the past year.