It’s no real secret that inflation is here. And it’s not “transitory.” Especially once wages start increasing, as those are extremely difficult if not impossible to bring back down.
Currently there are shortages in everything. Homes, cars, services, computer chips, even my local BBQ place ran out of brisket. Why is this? It’s not because every single thing has happened to have a shortage at the same time, it’s because everything is under priced from it’s fair value. The supply/demand curve that we all learn in high school economics, where it meets in the middle and that creates your price, is currently not in the middle. Places are charging prices that are way too cheap, because they haven’t gotten on board yet / are phasing it slowly to not cause negative PR. In capitalism things should never be out of supply, that means they’re not priced correctly.
How you can make money
So you understand that inflation = bad. You also understand indexes going down = bad. So you figure, since both are bad they are correlated. And puts on indexes is the play. If you think this you’re not alone, many hedge funds and large institutions believe this. You all have something in common though, you’re all retarded.
Inflation is nuanced. It’s horrible, but there is one good thing to inflation, and the reason the government causes it. It makes stock prices go uppies
So if you understand inflation is coming, what do you do? A bull may just begin buying calls on all the indexes, which will most likely pay off. But if you want to maximize profits. You should do the following.
Commodities do the best under inflation, as they are the first step in a supply chain, and so the first thing that raises prices. Steel, livestock, these are all exceptionally good plays. Stay away from precious metals, they’re just pure speculation