Inflation fears are one of the largest driving forces of the stock market right now. Consumers, politicians and analysts alike are all torn on the scope of inflation and how severely its impact will be felt. While some are brushing these fears off, many others are gearing up for things to get worse before they get better. This latter camp is getting their portfolios ready with inflation trade stocks.
The Federal Reserve is convening this Wednesday for its June meeting, and it seems that investors are carefully watching what the bank has to say about inflation. The Fed is not expected to take any particular actions at this meeting to curve inflation. But, it is likely to adjust its interest rate and inflation forecasts. This will give investors a better look at where the central bank’s head is at regarding the price bloom.
Hedge fund manager Paul Tudor Jones is one of those investors keeping watch on the Fed. The billionaire believes if the central bank is to come out and act like things are okay, investors should be heavily investing in inflation trade stocks.
“If they say, ‘We’re on path, things are good,’ then I would just go all in on the inflation trades,” Jones said on Monday morning.
7 Inflation Trade Stocks to Watch for the Fed
So, what inflation trade stocks should investors be looking at, given Jones’ green light? Well, InvestorPlace contributor Alex Sirois has you covered. Sirois rounded up inflation trade stocks that look the most solid in the face of rising consumer prices. Broadly, commodities and gold are hugely popular plays.
Ahead of what will be one of the most telling weeks for the economy and its inflation problem, here are Sirois’ picks for the best inflation trade stocks:
- Barrick Gold (NYSE:GOLD)
- Newmont Mining (NYSE:NEM)
- West Fraser Timber (NYSE:WFG)
- Facebook (NASDAQ:FB)
- Alibaba (NYSE:BABA)
- Pilgrim’s Pride (NASDAQ:PPC)
- Hess (NYSE:HES)
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.