As the economy braces for the full effect of US tariffs, the threat of inflation is looming large once again, potentially putting your stocks at risk as higher costs are absorbed across the supply chain. While nothing will combat inflation as effectively as increasing your income, investors looking for an added edge still have serviceable options at their disposal. Broadly speaking, they are:
- Aligning their portfolios with undervalued stocks positioned to deliver significant upside, driven by attractive operations and pessimistic share prices.
- Increasing their allocations to stocks that stand to benefit from inflation, including commodity stocks, whose target materials will increase in price in line with inflation, placing a higher floor on overall returns.
In an ideal world, investors keen on more commodity exposure would seek out companies that fit both categories, supercharging their potential to outperform…
