2 sectors, 6 stocks MLC likes as inflation plays
A handful of companies across two key sectors would benefit from rising inflation after decades in the doldrums, says MLC Asset Management portfolio manager John Woods.
Australia’s catastrophic bushfires of 2019 and the global pandemic that hit in March were a double-whammy for the agriculture sector. The fires led to higher grocery prices as demand skyrocketed, “and this was accentuated as we went through the pandemic,” says Woods.
Rising inflation is one of several potential scenarios modelled in the MLC Investment Futures Framework, a tool Woods and his team use to mitigate risk across multi-asset portfolios.
Boosted supermarket margins is a potential flow-on effect captured in MLC's multi-asset portfolio. The team has also spotted opportunities in mining, a global sector knocked by pandemic shutdowns but benefiting locally from China’s earlier stage in the recovery cycle.
In the following video, Woods reveals three supermarket stocks and a trio of Australian-listed global miners his team tips to benefit in the months and years ahead.
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