How one big stock-market investor is positioning for a decade of inflation

With the threat of inflation back at the forefront for many investors, there’s one large stock-market investor positioning for it to be a decade-long phenomenon.

In a note posted to the firm’s website, Chief Investment Officer William Smead of Phoenix-based Smead Capital Management, which oversees $5.83 billion in assets, said “we are loaded with inflation beneficiary stocks like oil and gas stocks and useful real estate.” The firm likes home builder D.R. Horton DHI, +1.22% ; Simon Property Group SPG, +0.68%, a real estate investment trust that invests in shopping malls; and energy company APA Corp. APA, -1.

All three major U.S. stock indexes were down in the final hour of trading on Wednesday, after ISM data showed the services sector expanded for an eighth straight month in August. The report, which reignited worries about inflation, pushed two-month through 10-year Treasury yields BX:TMUBMUSD10Y higher, and slightly nudged up the market-implied likelihood of another Federal Reserve rate hike in November or December.

“Unfortunately, the government is discouraging fossil fuel production, so get ready for high oil prices for a long time. Throw in labor demanding higher wages and you get both cost-push and demand-pull inflation like what we saw in the 1970s. As inflation becomes a decade-long problem, we believe you will see growth stock price-to-earnings multiples contract over time.”Smead is lead portfolio manager for the firm’s almost $4.7 billion Smead Value Fund, which invests in large cap U.S.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Whack-a-mole regulation is a poor strategy to stop investment in Chinese military proxiesFrom Pennsylvania Avenue to Main Street, Americans find common ground in at least one area: China’s threat to U.S. national and economic security.
Source: WashTimes - 🏆 235. / 63 Read more »

Council Post: Rising Physical Incidents Should Drive C-Level Investment & ActionPhysical incidents are increasing in frequency, and their cascading effects can have a broad impact on operations.
Source: ForbesTech - 🏆 318. / 59 Read more »

duPont REGISTRY Announces Luxury Automotive Investment Platform, duPont REGISTRY InvestJoint Venture being developed with Rally Will Offer Fractional High-end Car Ownership to Aspirational Automotive Enthusiasts.
Source: InsideEVs - 🏆 579. / 51 Read more »

duPont REGISTRY Announces Luxury Automotive Investment Platform, duPont REGISTRY InvestJoint Venture being developed with Rally Will Offer Fractional High-end Car Ownership to Aspirational Automotive Enthusiasts.
Source: InsideEVs - 🏆 579. / 51 Read more »

Truth Social investment partner extends deadline, avoiding liquidationThe extension was granted three days before Digital World would have been required to dissolve itself and return money to investors.
Source: washingtonpost - 🏆 95. / 72 Read more »

Exclusive: Shell, Trinidad weigh Venezuela's natural gas investment demandsShell and Trinidad and Tobago's National Gas Company (NGC) are close to agreeing to credit Venezuela's state-run oil firm for its $1 billion investment in a gas field the three want to jointly develop, four people close to the discussions said.
Source: Reuters - 🏆 2. / 97 Read more »