Back in 1983, blues legend B.B. King sang the hit “Inflation Blues.”
That song could be on the airwaves today, given that inflation — as measured by the Consumer Price Index (CPI) — is 6.8%, its highest in 39 years.
And we’re all feeling it. At the gas pump … the supermarket … car dealerships … you name it.
While we brace ourselves for prices to rise even higher, as investors, it means a chance to capitalize on specific opportunities in this environment.
To learn more about how to play the market to our advantage, I turned to
Senior Editor Tony Sagami, who’s focused on assets that will “produce good returns during periods of higher inflation.”
Tony is the editor of Disruptors & Dominators and Weiss Ultimate Portfolio, both of which use two Weiss Ratings metrics that are not publicly available:
- Each stock’s Performance Index, which evaluates its profit-making power in the next 30 days.
- And each stock’s Performance Ranking, from No. 1 to No. 10,000.
Tony says the overall climate right now is ripe for gains:
So, 2022 is going to be another good year for investors.
All the economic signs are really strong. Look at unemployment — we’re in the 4% range. Consumer confidence is high, real incomes are rising from higher wages, the government is still giving away money and interest rates are still at near zero.
This is not a bad economy. This is a good economy.
It’s an economy where on the first trading day of the new year, Apple (Nasdaq: AAPL) became the first company in the world to hit $3 trillion in market capitalization!
Of course, that’s one of the tech giants that went into 2022 with impressive momentum.
At the end of 2021, the top seven stocks in the S&P 500 were all tech names … and Apple was among them. Those stocks accounted for a whopping 27% of the index.
But this year, tech stocks aren’t the only ones set to flourish.
In this special four-minute video segment, Tony delves into the trends and sectors he sees dominating in the coming months, as well as an asset class heading for a major rebound this year.
He says one market trend that’ll stay strong is stock buybacks. Last year, they helped push U.S. stock indexes to several record highs.
Tony explains:
The easy borrowing from banks and the low interest rates makes it really attractive for corporations to buy back their own stock. They borrow money at close to zero — less than 1% — and buy back their own stocks.
The top executives make a lot more money because they reduce the number of shares, and the earnings per share (EPS) go up.
The reason their earnings per share go up is kind of like a pizza. Everybody knows the more cheese you put on the pizza, the better it tastes. And when you reduce the share count, they’re essentially putting the same amount of cheese on a smaller pizza.
And that’s what makes CEOs rich … and it will also help make us rich.
In this insightful video, Tony discusses:
- A stock that has shot up more than 70% since he recommended it.
- An exchange-traded fund (ETF) “not widely known, that’s going to go a lot higher!”
- Companies that should pack your portfolio as they ride the growing wave of e-commerce.
- And more!
The information in this short segment couldn’t be timelier. I suggest you click here to watch it now.
Happy investing!
Jessica Borg
Financial News Anchor
Weiss Ratings
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