andy wang inflation

Chevron (CVX) And Horizon Kinetics ETF (INFL) As Inflation Trades

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%.

 

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About the Author: Andrew Wang

Andrew Wang

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