Inflation is here and unlikely to leave soon, creating a need among investors. The need is for inflation-resistant stocks to offset broader market volatility.
Today’s inflation issues are underpinned by elevated oil prices. Although the Iran conflict appears to be winding down, the damage to global oil infrastructure will remain. Estimates vary but tend to agree: global energy capacity is down by the double digits, and it will be at least a year before it comes back online in most cases. In extreme cases, estimates run as high as 5 years.
