Inflation could get much, much worse.
In fact, according to billionaire hedge fund manager, Paul Tudor Jones, as noted by CNBC, inflation is here to stay, and could be a major threat to the U.S. economy.
“I think to me the No. 1 issue facing Main Street investors is inflation, and it’s pretty clear to me that inflation is not transitory,” Jones said. “It’s probably the single biggest threat to certainly financial markets and I think to society just in general.”
Inflation is getting so bad, big companies are saying consumers can expect higher prices at food stores. Already, Nestle, Danone, and Procter & Gamble have warned about this.
While markets seem to have shrugged off the news, that may not be the case for long – especially with its potential impact on borrowing costs, and input costs, while reducing the standard of living. It can also damage earnings growth.
So, how do you protect yourself?
Invest in Cryptocurrencies or Even the Miners
One way is to invest in cryptocurrencies, and even crypto-mining stocks.
According to Paul Tudor Jones, as noted by CNBC, Bitcoin is a great way for him to protect his wealth over the long run. He also believes Bitcoin is a “store of wealth like gold.”
Or, you can buy the cryptocurrency miners, like Marathon Digital and Riot Blockchain, since they benefit from the rising value of Bitcoin, as well.
Invest in the Horizon Kinetics Inflation Beneficiaries ETF (INFL)
The INFL ETF reportedly offers protection in inflationary environments.
“Two areas that you’d be pretty hard pressed to argue against being inflationary over the past decade are higher education and health care,” hence INFL’s top holding, pharmaceutical service provider Charles River Laboratories, said the INFL’s co-portfolio manager, James Davolos, as quoted by CNBC in June 2021.
At $31.50 with an expense ratio of 0.85%, the ETF also holds a position in Franco Nevada Corp., ASK Ltd., Texas Pacific Land Corporation, Viper Energy, CBRE Group Inc., and Archer Daniels.
Since the start of October 2021, the ETF jumped from $29.25 to $31.52 – and could push higher along with inflationary threats.
Invest in Real Estate Stocks, Like Green Brick Partners (GRBK)
Green Brick Partners is a diversified homebuilding and land development company that currently operates in Texas, Georgia, Colorado, and Florida, according to the company’s site.
Greenlight Capital’s David Einhorn also seems to like it as an inflation hedge. “The company has a compound revenue growth rate of 28% and a pre-tax profit growth rate of 44% since its public debut in 2014,” Einhorn said, as noted by Benzinga, “adding that it’s trading at around six times this year’s earnings.”
Since finding double bottom support dating back to March 2021, the GRBK stock is just beginning to pivot higher. From a current price of $23.60, it could test triple top resistance around $28 a share.
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