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.
“When the FHFA acts as a conservator, it may aim to rehabilitate the regulated entity in a way that, while not in the best interests of the regulated entity, is beneficial to the Agency and, by extension, the public it serves. This feature of an FHFA conservatorship is fatal to the shareholders’ statutory claim.”Justice Samuel Alito
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?Borr Drilling Limited (NYSE: BORR)
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.
“We are encouraged by the signs of a recovering shallow water rig market so far in 2021. The number of Borr operating rigs stood at 13 at the end of the first quarter, up by five units from trough levels experienced in 2020. Tendering and contracting activity remains strong. Since the beginning of this year, Borr has secured new contracts and confirmed optional periods with a total revenue potential of approximately $162 million, excluding unexercised option periods.”The CEO of Borr Drilling Ltd., Patrick Schorn
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. (NYSE: INUV)
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.
There has not been recent company-specific news from Inuvo Inc., but the company did present at the 2021 LD Micro Invitational XI on June 9th. At the start of June, the company expanded its geographic footprint of AI-driven media services into Canada. Additionally, it announced that its IntentKey AI platform for advertising will now be used in the country.
“The value proposition for Canadian companies is strong: we can serve both their domestic and American advertising objectives; we can beat current providers performance results; we can run it all for them or they can use it in-house; and we are future proof as our technology is not dependent on third-party data or cookies because it was designed to uncover signals of intent that define the why that drives a product/service purchase, not the who that is behind that purchase.”The CEO of Inuvo, Rich Howe
One month ago INUV stock was at $0.78 per share on average. Now INUV stock has reached $0.91 per share on average. Considering this, will it make your penny stock watchlist this month?Avinger Inc. (NASDAQ: AVGR)
One biotech penny stock that has been exploding in value is Avinger Inc. This is a commercial-stage medical device company based in the United States. Avinger designs, sells, and manufactures image-guided and catheter-based systems. These are in use to treat those with peripheral arterial disease in the U.S. and Europe.
On June 28th, Avinger announced key opinion leader presentations at several vascular conferences in Germany. The latest update that provides context as to where the company is at right now, was its first-quarter financial results. This is when it announced that its revenue increased 13% year over year to $2.6 million. AVGR stock price increased by nearly 22% on June 29th. This was based on no company-specific news. Just one year ago the company was at $0.33 per share on average. Will AVGR stock make your watchlist this week?3 More Penny Stocks to Watch Right Now
- Borqs Technologies Inc. (NASDAQ: BRQS)
- Predictive Oncology Inc. (NASDAQ: POAI)
- Inpixon (NASDAQ: INPX)
Finding the best penny stocks to watch to avoid inflation is an important and potentially profitable method for your portfolio. But, in order to do so, investors need to do the proper research and find which stocks could be more valuable in the long term.
[Read More] 7 Top Penny Stocks For Your July 2021 Watch List
While no one knows exactly when this inflation will fully kick in, in the meantime investors can take this opportunity to find the best penny stocks to buy. With that in mind, are these penny stocks on your watchlist?