Cramer: ‘Stop Freaking Out’ About Inflation” — here's how to profit from soaring costs

Jing Pan   Mon, October 25, 2021   MoneyWise

The threat of runaway inflation has many investors running scared — but for once, Jim Cramer isn’t getting too heated.  The Mad Money host says there are still plenty of attractive places to put your money, pointing to four sectors in particular that could profit from rising prices.

Cramer: ‘Stop freaking out’ about inflation — here's how to profit from soaring costs

“We’ve got lots of companies that benefit — and many that benefit, you might say, spectacularly — and others that are basically immune,” Cramer said last week on his show. “Plenty of winners out there if you just stop freaking out and start looking at the opportunities.”

Here are the four safe havens Cramer recommends and why you might want to funnel some cash that way, even if it’s just your spare pennies.

Energy

Inflation and commodity booms often go hand in hand, with energy typically leading the charge.

In fact, the price of crude oil has already gone up over 70% year to date, while natural gas prices have more than doubled.

Of the big multinational energy producers, “I like Chevron the most,” Cramer says.

“[The company] yields nearly 5% [and is] committed to spending $10 billion in new technologies that are less energy-intensive.”

Cramer also likes domestic producers that seem to be returning more and more capital to shareholders in the form of dividends — naming Devon Energy and Pioneer Natural Resources as just a couple.

Financials

Banks tend to do well under rising interest rates. And facing growing inflation, the Fed is expected to raise rates as soon as next year.

Cramer points out how well Bank of America, Goldman Sachs and Morgan Stanley have been doing, but he also likes Wells Fargo for being a “wildcard turnaround of this entire stock market.”

After a 70% rally year-to-date, Wells Fargo shares now trade at about the same level as they did in January 2020. The other three stocks, however, are trading well above their pre-pandemic levels.

“Wells Fargo can have a ton of upside if it finally gets its house in order,” Cramer says. “And I’m telling you, it is getting its house in order.”

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