Inflationary pressures have been exacerbated by the COVID-19 epidemic, which has caused disruption to industrial supply chains. This, along with rising U.S. Treasury yields and China’s weak economic data, will likely continue to foster stock market volatility. Market volatility will increase in the event that the Fed stops issuing stimulus funds, according to analysts. But despite this uncertain backdrop, we believe fundamentally sound stocks América Móvil (AMX), ArcelorMittal (NYSE:), and Ternium S.A. (TX) could be solid bets. These stocks are rated ‘Strong Buy’ in our proprietary rating system. So, let’s discuss these names.The pace of economic recovery is still uncertain due to the supply chain disruptions and consequent inflationary pressure. Further, the continued spread of COVID-19 Delta-type infections is expected to hinder economic recovery. Consumer prices in the United States increased by 5.4% and 0.4% respectively year-over-year between September 2010 and September 2011. Additionally, the index climbed to 1.6% just before this market opening. Mohammed El-Erian economist predicts increased market volatility if the Fed pulls out stimulus measures.

Despite the lingering concerns related to the economic recovery, the S&P 500 ended the last week 1.8% higher, registering its best week since July. Bullish investors were encouraged by a strong start to the third quarter earnings season. In addition, retail sales increased 0.7% from August versus analysts’ expectation of a decline.

Against this backdrop, we think betting on fundamentally strong stocks América Móvil, S.A.B. de C.V., ArcelorMittal and Ternium S.A.A. (TX), could all be profitable. These stocks are rated ‘Strong Buy’ in our proprietary rating system.

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