Hello there - If you’ve had the “pleasure” of taking a class on macroeconomics, you may have a greater appreciation for the current inflation debate. Looking at it academically with pencils sharpened and graphs neatly plotted, inflation may indeed be “transitory.” That certainly seems to be the opinion of institutional investors. They are making it clear to Federal Reserve chair Jerome Powell that he better not stop that QE one quarter earlier than they want. If he does, they may just pull the air out of this bubblicious stock market right now. If I dust off my macroeconomic textbook, I can support the broad concept that many of the price hikes that we’re seeing are transitory in nature. After all, it’s hard to simulate the supply-demand imbalance caused by the Covid-19 pandemic. But I urge you to consider one key point. Like politics, all inflation is local. Or put another way, inflation means one thing on Wall Street and something quite different on Main Street. Maybe Powell is right and this isn’t going to be the 1970s redux, but I suspect that it’s been a minute since he’s shopped for his own groceries. Or priced out a car, or had to sweat the rising cost of tuition. The thing about price hikes is that they have a stubborn way of lingering in the economy long after the “threat of inflation” recedes. To many consumers, inflation will make a dent in budgets for some time to come. However, your goal as an investor is to profit, no matter what the actual truth is about inflation, and that’s the focus of this special presentation … to help you identify companies that will provide a hedge against inflation – transitory or otherwise. View the “7 Stocks to Buy That Will Benefit From Inflation.”
Matthew Paulson
MarketBeat.com | 
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