How to play the Inflation Trade in the holidays

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How to play the Inflation Trade in the holidays

Post-Ponzi pent-up consumer demand has sparked a spending spree that businesses are trying to satisfy. A shortage of workers leads to supply chain bottlenecks, higher wages, and inevitably higher prices up and down the supply line. The Consumer Price Index is at its highest point in three decades.

Experts from the White House say that the inflationary environment will hamstring the holiday shopping season and will last well into 2022. It's time for investors to rebalance their portfolios with inflation-protecting instruments.

We have assembled a team of experts to help you navigate the inflationary era. The FREE webinar: How to Play the Inflation Trade is brought to you by our partners at VanEck.

David Schassler, Portfolio Manager of the Inflation Allocation ETF, at VanEck, is a Portfolio Manager.

Webinar Highlights| How do I play the Inflation Trade?

00: 11: 20 Stocks to benefit in an inflationary environment.

00: 31: 30 Why investors should consider the energy sector?

00: 12: 30: When you get higher inflation, commodity prices immediately respond to supply and demand imbalances. We saw that already. Natural resource equities are the companies that benefit from higher commodity prices. Schassler said both of them have already happened.

Gold has historically outperformed the commodity of inflation in the second half. It takes a while to realize that you have an inflation problem. We've had an inflation problem for a year. If you look at the previous inflation cycles, gold responds in the second half because people wake up to the idea that they have an inflation problem. They have to do something about it. Schassler points out that Gold is starting to catch a bit. VanEck's Inflation Allocation ETF, RAAX Get VanEck Inflation Allocation ETF Report combines gold with nearly two dozen other inflation hedging holdings into one investment product. Other components include natural resource equities, infrastructure investments, REITs, and some yield plays.

A commodity with no historical precedent,Cryptocurrencies, is getting attention in inflation-fighting circles. Schassler believes that a new generation of investors view cryptocurrencies as an alternative to gold. Since they started talking about Bitcoin, they have outperformed gold almost every year on a calendar year basis. Stocks to benefit from an inflationary environment.

Consumer durables, names like a Coca-Cola KO Procter and Gamble Company PG You know they are boring, but they do offer safety and they offer a yield and protection. Lang is watching the cargo containers languishing offshore at ports around the nation and sees opportunity One group that I think is going to benefit, particularly in the short term and the long term. I think this group can raise prices because deliveries need to happen. Lang suggests companies like CSX Corporation CSX Corporation CSX Get CSX Corporation Report Norfolk Southern Corporation NSC -- Get Norfolk Southern Corporation Report and Kansas City Southern KSU -- Get Kansas City Southern Report. I think banks and financials have the same sort of advantage. Nancy Davis, CIO at Quadratic Capital Management, says : To me, it s history repeating itself with different problems, such as cheap labor and supply shortages, which I think could lead to higher prices but lower growth. She recommends playing the interest rate markets as the best place to hedge against rising prices and volatility, and recommending TIPS, which are treasuries with inflation protection, and saying diversification is a must for all portfolios.

There is an unknown territory where you can get a diversified portfolio, whether it is inflation, deflation or stagflation. Schassler says that the Fed is stuck in the middle of 00: 06: 30. We're in a pretty vulnerable situation where I think we have to tolerate higher inflation for longer because the alternative is directly fighting inflation. I think we need to get comfortable with the idea that inflation may be higher for a longer time. Schassler says, Inflation is here. The good news is that people can do something about it. Why investors should consider the energy sector?

When you look at EVs versus traditional vehicles, they take about five times as much metals to make them. Schassler says that to get there we have to have more demand for metals.

We're in the middle of a major transformation that's going to take an extended period of time to get there. It's causing mismatches in supply and demand. We think these add to the inflationary fires, and they're only going to do so for an extended period of time. You can also watch How to Play the Inflation Trade, a FREE webinar hosted by Susan McGinnis, to learn more about inflation s direction and how to mitigate its effects and profit.