The latest Consumer Price Index showed prices 3.4% higher in July than a year ago, well above the Federal Reserve's 2% target. Energy prices jumped 14.7%, electricity rose 4.2%, and food increased 3%. Producer prices, meanwhile, remained 4.7% higher than a year ago.
The Congressional Budget Office has specifically concluded that the Trump administration's policies have contributed to current inflationary pressure. Indeed, changes to trade, tax, spending, and immigration policy have all affected prices, demand, and labor supply. But this isn't about why inflation is getting worse.
It's about how to position your portfolio to actually benefit from "Trumpflation." Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » There are several ways to build and protect your wealth during inflationary times: bonds, gold, and energy stocks. Here, I want to share with you two specific stocks that are actually positioned to benefit if prices continue to rise: pharmaceutical distributors McKesson (NYSE: MCK) and Cencora (NYSE: COR).
McKesson isn't a pharmaceutical manufacturer. It's responsible for moving enormous quantities of drugs from manufacturers to pharmacies, hospitals, and healthcare providers. Here's where it gets interesting.
Some of McKesson's distribution agreements contain inflation-based compensation provisions. Here's how they work: When manufacturers raise prices, McKesson can benefit because inventory purchased at the old price may subsequently be sold at the new, higher price. McKesson explicitly warns that a reduction in the frequency or magnitude of manufacturer price increases could actually squeeze gross margins.
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