Guys, we knew this was bound to happen with the way we printed money last year. Prices are rising, which means it’s time to share some stocks to buy during rising inflation.
purchase, you might not have noticed. But the cost of our steak, milk and gas don’t lie.
That’s why Joy of the Trade’s Jeff Zananiri and I sat down today for our mid-week roundtable to discuss the stock market right now.
First, some economics 101: Inflation is an increase in prices due to increased demand. This demand can be attributed to a variety of factors, including an expanded supply of money.
What have we done to keep the economy afloat during COVID-19? We pumped trillions of dollars in stimulus into the economy. Now that a return to normalcy is in sight as vaccinations increase and coronavirus cases drop, this is the result of all of that printed money.
Don’t worry though, we have some ideas on which stocks to buy.
The good news is these stocks aren’t hard to find. You don’t have to be Nostradamus — we’re certainly not — to see these coming.
We’ve said it all week: Take the low-hanging fruit. Pot stocks and clean energy.
Just look at this trade Jeff made in January, for example. He liked Canopy Growth Corp. (Nasdaq: CGC), which was $32 a month ago and is up to $50 today. By linking that trade with shorting Altria Group Inc. (NYSE: MO), a tobacco company, he hedged against the market.
With the social shift away from tobacco products (now socially taboo) and toward backing cannabis, this was a no brainer. And if the market goes bearish, we expect Altria to take a beating.
So if you’re worried about what stocks to buy during rising inflation, don’t overthink it.
There are tons of other really good trades to be made. Sit down with Jeff and me as we take a look at the markets and discuss even more stocks and sectors to buy during this inflationary period.
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