Inflation erodes savings, but it also shapes opportunities in the stock market.
## How inflation impacts stocks
– Companies face higher costs for labor and materials.
– Some businesses pass costs to consumers, others cannot.
– Interest rates rise to combat inflation, lowering stock valuations.
## Stocks that benefit from inflation
– Energy companies like ExxonMobil and Chevron.
– Consumer staples like Procter & Gamble and buy valmont industries shares Coca-Cola.
– Higher rates improve profitability.
## Strategies for investors
– Energy, healthcare, consumer staples.
– Use dividend-paying stocks to maintain income flow.
– Consider global exposure where inflation trends differ.
**Conclusion**
Inflation is both a risk and an opportunity. By holding energy, financials, and consumer staples, portfolios protect wealth.
