Jun 30, 2021 (Penny Stocks via COMTEX) -- 7 Penny Stocks to Watch With Inflation on the Horizon
Over the past year and a half, many penny stocks investors have hedged bets against long-term inflation. While fears of inflation can be speculative at times, there are some pretty clear reasons as to why inflation is inevitable right now.
In the Spring of last year, the Federal Reserve printed as much as $3 trillion according to data from the Fed that tracks the measure of the stock of dollars (M2). This represented around 18% of the total supply of dollars in circulation. With some quick math, we see that nearly one in five dollars right now has been printed in the past year. This is a staggering figure and one that will reflect into the economy at some point. Combine this with interest rates at near-zero levels and we see that inflation is inevitable.
Now, this is not something that will crumble the U.S. economy, as inflation is normal. However, it is something that penny stocks investors could use to their advantage. This could result in higher investments in cryptocurrencies such as blockchain penny stocks or other safer penny stocks to watch . But regardless, this inflation should factor into your strategy. With all of this in mind, let's take a look at some of the top penny stocks to watch to avoid inflation.
4 Penny Stocks to Watch With Inflation on the Rise
Federal Home Loan Mortgage Corp. ( OTC: FMCC )
Borr Drilling Ltd. ( NYSE: BORR )
Inuvo Inc. ( NYSE: INUV )
Avinger Inc. ( NASDAQ: AVGR )
Federal Home Loan Mortgage Corporation (Freddie Mac) is a penny stock that is focused on the secondary mortgage market in the United States. It purchases residential mortgage loans originated by lenders and invests in mortgage loans and securities.
On June 25th the company priced a new offering of structured pass-through certifications that are backed by the underlying collateral. This consists of fixed-rate multifamily mortgages with, most commonly, 7-year terms. It expects to issue $743 million in K-743 certificates. On June 23rd, shares of FMCC stock collapsed in value. This occurred following the Supreme Court dismissing a challenge from shareholders over the sweep of profits to the Treasury. Shareholders argued that the structure of the Federal Housing Finance Agency was unconstitutional.
Despite the company's stock price taking a deep dive on this day, it seems like FMCC stock price is back on the rise again. On June 29th, FMCC stock rose by 10% in the market. Its volume is more than three times its average on the same day. Considering this is FMCC stock a good bet against inflation?
Oil and gas penny stocks like Borr Drilling Limited are performing very well in the market right now. This company operates as an offshore drilling contractor. It owns, contracts, and operates jack-up rigs for operations in shallow-water areas. The company serves integrated oil companies, state-owned oil companies, and independent oil and gas companies. Its fleet consists of 24 jack-up drilling rigs, as of December 31st, 2020.
On May 30th the company announced a trading update that included key financial information for the first quarter of 2021. This included total operating revenues of $48.4 million and a net loss of $58.1 million.
In the past six months, shares of BORR stock have traded mostly sideways overall. However, there seems to be some recent bullish momentum for the energy penny stock. BORR stock increased by nearly 3% on June 29th. This rise also saw its volume shoot higher than its average. Will you add BORR stock to your watchlist this week as a result?
Inuvo Inc. is a communications penny stock that is based in the United States. This corporation sells and develops information technology solutions. Some of its platforms identify and message online audiences for different products and services. Its services also allow advertisers and publishers to buy and sell ad space in real-time. ValidClick is Inuvo's online marketing service platform that has driven a great deal of attention to the company. And, its IntentKey product is an AI-based consumer intent recognition system designed to reach targeted audiences.