Best and Worst Stocks for QE Infinity and Stagflation
By InvestingDaily.com Sep 19, 2012 2:40 pm
The Federal Reserve's QE Infinity decision to buy $40 billion per month in bonds promises stagflation. This presents some interesting investment themes for the future.
Best Stocks for QE Infinity
As I wrote more than two years ago in Best Asset Classes for Stagflation, weak economic growth combined with increased inflation favor:
- Commodities like gold (NYSE:GLD), coal (NYSE:KOL), crude oil (NYSE:DBO), and agricultural fertilizer (NYSE:MOO)
- Foreign emerging markets (NYSE:VWO)
- Large US multinational exporters that benefit from a weak US dollar (FEXPX)
- Dividend stocks (NYSE:DVY)
- Small-cap growth stocks (NYSE:IWO)
Worst Stocks for QE Infinity
Losers would be companies whose input cost structures rely heavily on commodities, such as trucking companies, airlines, cereal manufacturers, jewelers, and restaurants.
This article by Jim Fink was originally published on Investing Daily.
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No positions in stocks mentioned.