Best Stocks to Invest in for Hedging Against Inflation in 2021

by | Dec 19, 2023 | Invest During Inflation | 15 comments

Best Stocks to Invest in for Hedging Against Inflation in 2021




If you’re looking to hedge and protect your portfolio, you’ll want to have a look at the gold sector, which is a strong option when it comes to investing during inflation.

With countries printing more money than ever before, many are asking if gold is a good hedge to inflation. And, the answer is not so cut and dry. In fact, many people don’t consider the fact that gold actually has very little correlation with an inflationary environment, unless it is a VERY specific type of inflation, which we go over in this video.

So, we will go over some popular strategies for investing during inflation, and also cover some of the top Canadian stocks when it comes to hedging. This video will go over 5 of the top Canadian gold stocks we’ve got eyes on right now, and we aim to provide a wide variety of options in terms of junior and senior producers, gold streamers and strong value plays.

If you’re new the channel, Daniel Kent has over a decade of self-directed investment experience and has completed the Canadian Securities Course. He is an avid investor in small-cap Canadian growth stocks and Canadian dividend growth stocks.

Mathieu Litalien holds an MBA, and is a self directed investor with over 20 years of experience investing in the Canadian and US markets. He is also an avid small-cap Canadian growth investor and DGI investor.

Speaking of the top stocks in Canada, If you’re looking to gain access to the best investment platform in Canada, click the link below to sign up and get a huge discount to Stocktrades Premium now. We’re more than doubling the TSX Index since 2018, and are helping thousands of Canadians invest better.

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Investing During Inflation – Top Stocks to BUY NOW To Hedge in 2021 Chapters:

00:00 – Introduction
01:02 – Member Requested Videos
01:52 – Is Gold The Best Inflation Hedge?
04:06 – Is Now The Time To Buy Top Canadian Gold Stocks?
05:20 – Argonaut Gold Stock (TSE:AR)
08:32 – Barrick Gold Stock (TSE:ABX)
11:42 – B2Gold Stock (TSE:BTO)
15:14 – Wesdome Gold (TSE:WDO)
17:56 – Franco Nevada Stock (TSE:FNV)
21:16 – Wrapping Up Canada’s Top Gold Stocks…(read more)


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REVEALED: Best Investment During Inflation

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Investing in stocks during times of inflation can be a daunting task, but it is not impossible to make smart investment decisions during such economic conditions. Inflation can erode the value of your money over time, so finding stocks that can hedge against inflation is crucial for long-term investment success.

As we head into 2021, experts are predicting an uptick in inflation due to the massive stimulus measures and the economic recovery from the COVID-19 pandemic. Therefore, it is essential for investors to look for stocks that have the potential to outperform during times of inflation. Here are some top stocks to consider buying now to hedge against inflation in 2021:

1. Consumer Staples Companies: Companies that produce essential consumer goods, such as food, household products, and personal care items, tend to perform well during inflationary periods. These companies have pricing power and can pass on increased costs to consumers. Some top consumer staples stocks to consider include Procter & Gamble, Coca-Cola, and Walmart.

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2. Energy Companies: Energy stocks can be a good hedge against inflation as the demand for energy generally remains strong even during economic downturns. With the global push for renewable energy, companies like NextEra Energy and Dominion Energy are attractive investment options for the long term.

3. Real Estate Investment Trusts (REITs): Real estate can be a good hedge against inflation as property values and rental income tend to rise along with inflation. REITs offer exposure to various real estate sectors and can provide a steady stream of income for investors. Some top REITs to consider include AvalonBay Communities, Simon Property Group, and Prologis.

4. Gold and Precious Metals Companies: Gold and other precious metals are traditional hedges against inflation. Investing in gold mining companies like Newmont Corporation and Barrick Gold can provide exposure to the commodity while also offering the potential for growth and income.

5. Infrastructure and Utility Companies: Companies involved in infrastructure development and utilities can be good investments during inflation. These companies tend to have stable cash flows and pricing power, making them resilient in inflationary environments. Some top infrastructure and utility stocks to consider include American Tower Corporation, NextEra Energy, and Dominion Energy.

It is important to note that while these stocks can hedge against inflation, there are still risks associated with investing in the stock market. Investors should conduct thorough research and consult with a financial advisor before making any investment decisions.

In conclusion, investing in stocks during inflation requires a strategic approach and careful consideration of various factors. By choosing stocks from sectors that are less impacted by inflation and have the potential to outperform during such economic conditions, investors can position themselves for long-term success. It is important to stay informed about market developments and adjust investment strategies accordingly to navigate through inflationary periods.

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15 Comments

  1. @StocktradesLtd

    How are you hedging your portfolio? Have you noticed rising costs? And most importantly, DROP A COMMENT BELOW and let us know what you want to see content wise!

  2. @hermandhillon6518

    Boys what was the email again???? I'll sign up little later today

  3. @kirklangdon1591

    Holding FNV and BTO, only 20 and 600 shares respectively. I’ve also started picking up a few shares of K9 Gold Corp when they dip below $0.40, they found a massive gold deposit on their property in Central Newfoundland close to my hometown and they have a fairly strong buy rating now with one analyst stating that it might be one of the best wealth building opportunities of the decade (for the tsx). Perhaps one of the most mineral rich deposits in North America right in Newfoundland’s “Gold Belt”. I’m also considering Kinross, like BTO, they are trading at an extremely low price to earnings ratio (right around the 6-7 mark). Do you guys have any thoughts on KNC (K9) and K (Kinross).

  4. @jasonstupak4535

    Watched and liked, thanks. Own Kirkland and Barrick, but primarily CGXF because every time I buy gold stocks they go down. I'd rather own the covered call ETF and generate decent cash flow when things are sideways or downtrending.

  5. @crash7098

    Not Gold, but how do you all feel about Freehold? And, Boston Pizza Royalties?

  6. @Napatreez1

    Gamestop moass

  7. @Rob-ob3sh

    Hi Dan, would owning a gold ETF be a good play ? Thanks great video thanks

  8. @ShameerRavji

    Would love to see an analysis on AQN. Thx.

  9. @spandex7055

    Holding BTO and FNV for a while now, BTO lagging but a nice dividend and tons of cash in the bank.

  10. @tigalbaby

    Analysis much appreciated. Any info on the aisc at Abx? Bto does indeed look attractive at current prices …, will certainly be keeping an eye on these.

  11. @arturosoto5199

    Excellent video, thanks for sharing.

  12. @robertb1802

    What do you guys think about inverse bitcoin?

  13. @goldman1195

    but isnt it true also that Oil does very well inflationary periods?

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