New data released Wednesday suggests inflation is on the rise. So what's the best way to trade it?
Treasury Inflation Protected Securities or “TIPS” are inflation index bonds that investors might want to investigate, says Karen Finerman. Or if that’s too complicated there are mutual funds that will do it for you. Check out the VanGuard Inflation Fund (VIPSX) or Pimco’s (PRTNX).
Forget that, says Guy Adami. Buy defense stocks such as Lockheed Martin (LMT), General Dynamics (GD), Raytheon (RTN), or L-3 Communications (LLL). I think all of these stocks could go higher into the election. Also check out Potash (POT).
I like grains as an inflation trade, adds Tim Seymour. Think about Archer Daniels Midland (ADM) or Monsanto (MON) as a play on food prices that will likely go up.