Consumer prices rose 3.7% over the 12 months through September, up from 3.4% in August, per the Bureau of Labor Statistics. Gasoline did much of the damage, and regular gas was still averaging $4.35 a gallon in early October, per the Energy Information Administration. If you want to buy a house instead of rent one, Freddie Mac put the average 30-year mortgage at 7.40% on October 15.
None of that has stopped Americans from spending. It has changed how they spend. The Fed’s latest Beige Book noted several districts seeing less spending on discretionary items and more shoppers trading down to cheaper options.
That shift is predictable, and it creates winners. In this piece I’m looking at five businesses on the right side of it: two that people trade down to, and three that get paid when people fix what they already own instead of replacing it.
A few things you’ll find in the full list:
A heating and air conditioning company that’s down about 37% from its high, carries no long-term debt, and has paid a dividend for 52 straight years.
A household name I think is a great business priced like one, and why it made the list anyway.
Why the cheapest retail stocks on most cost-of-living lists didn’t make my list.