Prudent investors will hedge against the possibility of being wrong…three companies with stable profits and decent dividends, along with a history of beating inflation and the ability to prosper without it…READ MORE.
My Take: ADM, ACI and PM are three solid investments that are most likely to do well in the long run with our without inflation. With inflation they will be a hedge to protect portfolio. Without inflation they will still be positioned to succeed. I’ve been cautiously blowing the inflation horn for a while now and have called out a few names (ADM for example) that I am keen of for such an economic scenario. Yet, I find the article above to be a very simple and straight forward way for those fearing inflation’s evils to gain protection, while still being in a fine position if inflation doesn’t run wild.
All too often investors seek out unknown and unproven companies in order to make some type of unsightly gain. It’s not uncommon for an unsightly gain to actually be an unsightly loss. Being a successful investor does involve taking risk, but it also is about making good decisions. ADM, ACI and PM might not double in value in the next year or two (I highly doubt it), yet I would bet they increase in value, continue their dividend payments and do not fluctuate all that much if/when we have a shake-up in the market.
Disclosure: No Position.