How Equity Investors Can Profit From Surging U.S. Inflation

inflation equity investors surging index
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How Equity Investors Can Profit From Surging U.S. Inflation

U. S. inflation figures for the month of June accelerated to the fastest pace since 2008, as the economic recovery following the Covid-19 related lockdowns continues to gather pace. Per the Labor Department, the consumer-price index rose 5. 4% from a year ago, while the core price index, which excludes food and energy, rose by 4. 5% versus last year. The price increases have been driven by surging demand for goods and services which have outpaced the ability of companies to keep up. Although supply-side bottlenecks should be ironed out in the coming quarters, factors such as significant stimulus funding, a surge in the U. S. personal savings rate and a continuation of the low-interest rate environment over the next two years could mean inflation is likely to remain at elevated levels in the near future. So how should equity investors play the current inflationary environment? Our theme on Stocks To Play Rising Inflation includes companies from the banking, insurance, consumer staples, and energy sector that could remain stable or potentially even gain from high inflation. The theme has returned about 16% year-to-date, roughly in line with the S&P 500. However, it has underperformed since the end of 2019, remaining…