Yesterday we took at inflation around the world and we didn’t like the numbers we saw and today the BLS released consumer inflation data and we don’t like those numbers either. All items are up 6.2%, Food is up 5.3% and energy is a whopping 30% higher year over year.
Interestingly, beef and dairy products are the major driver of food inflation complemented by fuel which begs the question: What’s up with cows?
Commodities in general are high across the board according to the BLS reports. Service also show signs of inflation pressure.
A few economic bloggers out there have been looking at Treasury yields and shrugging their shoulders not too concerned about inflation. We are concerned about inflation and have been preparing our portfolios accordingly. During high inflationary periods there are some ways to position your portfolio including insurance, banking and consumer essentials stocks. It is also prudent to hedge energy with a few energy stocks such as BP and XOM. Stay tuned to learn more because we are still crunching through data and the stock market is a bit overpriced at the moment so we are not eager to jump on any trades right now. We do want to be ready with a list of stocks to buy on corrections or big dips for the long haul. Below is a snapshot of some potential buys as they offer dividends, reasonable P/E ratios, and consistent dividend payments thru good times and challenging times but keep in mind that it’s on our watch list.
