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According to the Labor Department, the consumer price index (CPI) in August increased 5.3% from a year earlier and 0.3% from July, which was less than expected, signaling that inflation may be starting to cool. Furthermore, during the Federal Reserve’s recent, annual Jackson Hole economic symposium, Fed Chair Jerome Powell reiterated that high inflation is “temporary.” The economy’s management of inflation should boost the performance of the consumer discretionary sector.
So, we think it could be wise to bet on quality consumer discretionary stocks Yum! Brands, Inc. (YUM), Ulta Beauty, Inc. (ULTA), LKQ Corporation (LKQ), and Under Armour, Inc. (UAA).
