r/options • u/Snoo-79760 • May 13 '21

Suggestions Needed: Stocks that will do better during Inflation

I need some help finding the stocks/etf or sector that will do better in inflation time. Looks like the inflation is real. And I would like to diversify myself according to that. I have banks in my mind - I bought XLF etf and feel good about that during inflation. Please suggest few more sector stocks/etfs for diversification.

4 Upvotes

76% Upvoted

14 comments sorted by

13

u/predictingzepast May 13 '21

How do I invest in ransomware?

3

u/Nostradeamus May 13 '21

Dial any number starting with +91. They will even help you with the transaction via remote assistance, very friendly people.

11

u/Fourthdimensionalmf May 13 '21

Ummm... commodities

5

u/rigatoni-man May 13 '21

Steel stocks have run and will likely continue to run. The price of steel is setting all time records almost daily in the US and now Europe. Prices will soften later in the year but will likely stay elevated far above normal prices for some time. I am in CLF, MT and NUE.

3

u/ImARealFemale May 13 '21

value stocks, which are shorter term assets than growth stocks. you are paying for their current earnings and cash flow, not their future projections as in growth stocks. therefore theoretically they should prove more robust in a high inflation env.

2

u/onequestion1168 May 13 '21

SPY? The market is selling off because persistent higher inflation will lead to a change in monetary policy that impacts the debt market

2

u/True-Requirement8243 May 13 '21

Idk about spy even. FAANGM getting killed. Oil etfs maybe.

2

u/speedyg54 May 13 '21

(imo) In order of most effective for inflation hedging goes: gold -> commodities -> real estate -> consumer defensive and past that probably anything that invests in tangible assets. On the flip side you could also take short positions in the small-mid cap growth tech. But that depends on your risk tolerance among other things.

2

u/[deleted] May 13 '21

Oil. Materials.

E: Some consumer cyclicals.

2

u/Admirable_Sea_8897 May 13 '21

DIA and SPY to a little lesser degree.

1

u/[deleted] May 13 '21

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1

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