The right way to hedge against inflation that’s running at levels last seen in early 1980s, is to be in stocks, says Cerity Partners’ Jim Lebenthal. Inflation data for March is expected next week.
Lebenthal: big cap tech will do just fine
Interestingly, Lebenthal is convinced the big cap tech will continue to do well amidst inflation. He actually went to the extent of calling these stocks the “easy way” to make money against the current, rather challenging macroeconomic backdrop. On CNBC’s “Halftime Report”, he said:
I don’t expect multiples on Apple or Google to go up. So, the share price will go up at the rate the earnings do, which is roughly 8% to 12%. If you can do that by being in two of the highest quality companies, why wouldn’t you take the easy answer.
He, however, agrees that cyclicals will do even better in an environment where inflation remains high.
Jason Snipe likes Apple and Google too
Odyssey Capital Advisors’ Jason Snipe also agrees the mega cap technology stocks continue to be a promising position for the long-term investors. Speaking with CNBC’s Melissa Lee, he said:
Apple has $100 billion in free cash flow; Google has $67 billion. They have more capital than a lot of companies do business. That’s important if you’re looking at the longer duration with the 10-year at 2.70% roughly.
Last month, influential investor Jim Cramer also endorsed getting back into the tech stocks after a months-long hit to the sector.
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