Inflation Shakeup Has Started – Time To Shift To New Stock Opportunities

Inflation Shakeup Has Started – Time To Shift To New Stock Opportunities

Financial shakeup represented by stock chart, numbers, and currency symbols Inflation is here, and consumers know it. However, many stock investors continue to look backwards, content to hold past winners and the now-top-heavy S&P 500 Stock Index. So, it's the perfect time to buy inflation-based stock opportunities. How long do we have? Likely, until the coming earnings report period is in high gear. While the 2021 fourth quarter and full calendar year results will be positive, expect management's 2022 outlooks to be filled with inflation-based commentaries. The earnings reports begin with the major banks on Friday, January 14. However, there is another round of important earnings reports beginning in February that will really bring inflation to the forefront: Retail companies (they typically have fiscal years that end on January 31.) They are in the challenging and potentially unrewarding middle - squeezed by supplier cost increases and aggressive competitor pricing (in the fight for market share). Importantly, there are more inflation risky stocks than there are opportunities. So, expect the limited opportunities to have the extraordinary characteristic of seemingly unlimited high prices, so long as inflation remains a growing concern. (In other words, do not sell when warnings of "overpriced and