Inflation is coming and here are the stocks that will benefit, strategist says

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An attendee passes in front of John Deere brand tractors displayed during the World Agriculture Expo in Tulare, California, on Tuesday, Feb. 12, 2019.With economists widely expecting inflation to continue to rise in the coming months as we exit the global pandemic, one investment bank is advising its clients to invest in two sectors that it believes will benefit from the reflationary environment.

Peter Garnry, head of equity strategy at Saxo Bank, said in a recent note that while the "classic hedges against higher inflation are gold, inflation-protected government bonds and energy … the equity market also offers interesting alternatives." "There's so much stimulus coming and the tight coordination between fiscal and monetary authorities is definitely playing into the hands of equities at this point in time, until we get to a certain interest rate level when things will begin to change," he told CNBC's "Street Signs Europe" on Monday.

Garnry named a number of stocks that the bank thinks will benefit from reflation — a move higher in growth and prices — which he described as "the most important" market theme of the next 12 to 18 months.

 

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Pro How long have they been crying inflation? One of these years they’ll eventually be right.

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