5 Stocks to Buy in April before the Inflation Explosion

Joseph Hogue

Joseph Hogue

April 5th, 2022

DESCRIPTION
Inflation is about to surge higher and could cause another stock market crash. Do you know which stocks to buy and which to avoid? I’m highlighting the best inflation stocks to buy and how to invest. Follow these and all the stocks in our 2022 Bow Tie Nation portfolio on Stockcard. Use promo code bowtienation for a special discount beyond the free trial! https://mystockmarketbasics.com/stockcarddiscount In this video, I’ll show you why inflation is about to jump higher, why that could be a bad thing for stocks and what you can do to protect your money. We’ll look at the types of stocks that do best during higher inflation and then I’ll reveal five stocks to watch on double-digit inflation . In fact, three of these stocks, I’m adding to our 2022 Bow Tie Nation on portfolio. I started warning about inflation back in May of last year, when the consumer price index was only up 4% for the year and everyone was saying higher prices were only ‘temporary’! A year later and consumer inflation has jumped to 8% but Nation, higher prices are about to get shockingly worse and every investor needs to be ready! In reality, most of the time, you don’t have to worry about inflation affecting your stocks. Research by Hartford Funds on stock returns and inflation since 1973 breaks the market into four periods. When inflation is low, under 3% a year but rising, stock returns beat the inflation rate 90% of the time…so nothing to worry about. When inflation was high, so above 3% on a year-over-year basis but showing signs of coming down, stock returns still did pretty well, beating the inflation rate 76% of the time. When inflation was low, so under 3% and falling, here again, stocks ended up doing well, beating the inflation rate four-out-of-five years or 81% of the time. It's only when inflation is above 3% a year and rising, that’s when you have a problem and that’s when you need to worry about this. During those years, high inflation getting higher, which is exactly what we’re seeing how, stock returns were no better than a 50-50 roll of the dice. Nation, we’ve been watching inflation run higher for almost a year now, so why am I saying things are about to get worse? Why is it NOW that I think higher prices could really accelerate and start hitting stocks? One thing you need to understand is how important expectations are on inflation, the idea that once we start down that path of higher prices…people start to expect it and that actually pushes prices up even higher. If people think prices are going to keep rising, they ask for higher raises and they don’t pull back their spending when inflation hits. Nation, this can all become a vicious cycle of higher expectations feeding into higher inflation until we’re at double-digit price increases and it’s starting right now. When the Consumer Price Index, the CPI, which is the main measure of consumer prices in the United States, when that is released on April 12th, it’s going to show the highest inflation since 1981…possibly as high as 10% on a year-over-year basis. You see how prices have already surged to 8% a year but that jump to double-digits is about to take this to a whole new level of panic. 0:00 How to Invest for Inflation 1:22 5 Stocks to Buy on High Inflation 2:47 Inflation and Stocks - History of How the Stock Market Reacts 7:57 Why Inflation is Increasing 12:58 Best Stock and Stock Sectors for Inflation 🤑 Get The Weekly Bow-Tie - my FREE weekly email newsletter sharing market updates, trends and the most important news! Market Updates for the Smart Investor! https://mystockmarketbasics.com/dailybowtie My Investing Recommendations 📈 Check out the stock simulator and Get a FREE share of stock worth up to $1000 when you open a Webull investing account with a $100 deposit! 🤑 https://mystockmarketbasics.com/webull 📊 Download this Portfolio Tracker and Investing Spreadsheet! [Community Discount Code] https://mystockmarketbasics.com/spreadsheetdiscount Free Webinar – Discover how to create a personal investing plan and beat your goals in less than an hour! I’m revealing the Goals-Based Investing Strategy I developed working private wealth management in this free webinar. Reserve your spot now! https://mystockmarketbasics.com/free-investing-webinar SUBSCRIBE to create the financial future you deserve with videos on beating debt, making more money and making your money work for you. https://mystockmarketbasics.com/LetsTalkMoney Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
Joseph Hogue

Never miss a video from Joseph Hogue

Subscribe to get notified when new content drops.