Andrew Wang returned to Market Overtime with Nicole Petallides to discuss the impact of rising inflation on your long-term portfolio.
Since June of last year, commodities have rallied in a big way, as seen in the prices of copper, soybeans, corn, and oil. When investing for the long-term, it is important to be diversified. That includes owning stocks that are beneficiaries of rising inflation. Even if you think inflation is likely, though, it is not guaranteed.Chevron (CVX)
- After losing a staggering $5.5 billion in 2020, Chevron should return to profitability in 2021.
- Strong balance sheet and low production costs left it in a better financial position after last year’s oil price collapse.
- Allocating excess cash toward paying down debt, growing the dividend, and buying back shares.
- Raised quarterly dividend to $1.34 per share per quarter, representing its 34th consecutive annual increase.
Horizon Kinetics Inflation Beneficiaries ETF (INFL)
- Actively managed exchange traded fund.
- Seeks long-term growth of capital in real, inflation-adjusted terms.
- Own 20 to 60 domestic and foreign equity securities of companies that are expected to benefit, either directly or indirectly, from rising prices of real assets.
- Expense ratio of 0.85%.
What do you think about inflation and its impact on the financial markets?