Seeking Alpha maintains buy rating for SPY amid rising inflation

Seeking Alpha remains bullish on SPY even as inflation numbers continue to climb.

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Add us on Google by Editorial Team May. 14, 2026

Core inflation rose more than expected in April 2026, hitting 3.8% year-over-year compared to the 3.5% forecast. Seeking Alpha is keeping its ‘Buy’ rating on the SPDR S&P 500 ETF Trust (SPY).

The challenge here is for the Federal Reserve, which now has to navigate these turbulent waters while trying to keep inflation in check.

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SPY’s resilience amid inflation

The SPY ETF has managed an 8% annual return during similar inflationary conditions since 2010. The SPY shares rose by 1.2% in after-hours trading after the new inflation numbers came out on May 10.

Energy costs went up by 5% and services by 4%.

Crypto as a hedge

Bitcoin has enjoyed a 12% price surge over the last month as investors consider it a hedge against currency devaluation. Bitcoin’s market cap leapt by $150 billion, as reported by CoinDesk.

What this means for investors

Expert analysis from The Block indicates that institutional investors could reallocate 15-20% from equities like SPY to digital assets with inflation sustained above 3%.

Higher inflation rates often lead to the Federal Reserve raising interest rates, which might invoke volatility in both equity and cryptocurrency markets.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.