McCullough: Prepare Your Portfolio For Inflation?

After approximately a year of slowing inflation, the data is signaling a reversal of that trend in 4Q 2019.

How much inflation will accelerate remains to be seen. But a dovish Federal Reserve and all-time highs in U.S. employment point to a possible stagflationary period ahead.

As Hedgeye CEO Keith McCullough explains in the clip above, no matter how much inflation accelerates in 4Q, it might be smart to start exposing your portfolio to inflation-sensitive sectors.

“We’re adopting a late-cycle stagflationary outlook,” McCullough explains.

“I would be much more apt to buy something like cattle, or the ETF (COW), which has pigs in it as well, over something like a consumer staple company that has no pricing power and is going to see some margin degradation.”

Watch the full clip above for more.

[johannes]

Gold should we well in this environment?

[ricardocavaleiro]

Oil should do well during an inflationary period, correct?

[vvolfflovv]

If people looked at rent prices, they would realize inflation is already higher than they are claiming

[KevinN]

So are we out of quad 4 completely now?

[billbritton]

I see stagflation for China. Why not here?

[ghgoogle]

Did you ever see that MOVIE 'Porky's Revenge!' Kevin? Not the porno version the one with a comedy cast. Did it reach Canadia?

[beautifulafrica]

"All time high in jobs"
LOLOLOLOLOL!!

[Radnally]

Stagflation. All male party that keeps growing