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How to Protect Your Portfolio Against Inflation

Published: Tuesday, 26 Feb 2008 | 3:47 PM ET
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By: Brooke Sopelsa
Video Producer

The largest increase in wholesale inflation in 26 years has left many investors wondering how to protect their portfolios. CNBC asked the market pros what they would do.

Feeding Your Portfolio

"We're putting money into food stocks, which are necessities, not discretionary items.  The consumers are going to...buy their cereals, they're going to buy whatever they need for their home and their children."

Sarat Sethi, Douglas C. Lane and Associates Portfolio Manager

Sethi recommends: Campbell Soup [CPB  Loading...      ()   ], General Mills [GIS  Loading...      ()   ] and Kraft Foods [KFT  Loading...      ()   ]

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Navigate stagflation -- with CNBC's experts:

Picks and Pans

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Four-Star Materials Plays

“What we at Schwab want to focus on is surprise anticipation, what may not be factored into the price and what may come ahead.”

Vivienne Hsu, Schwab Dividend Equity Fund

Hsu recommends: AK Steel [AKS  Loading...      ()   ] and Celanese [CE  Loading...      ()   ]

Retail Picks

“I think that you want to be focused on companies that have a model that’s looking to preserve free cash flow, manage their business very conservatively, capitalize on a recovery when it happens and see improving returns.”

Liz Dunn, of Thomas Weisel Partners Retail Analyst

Dunn recommends: Macy’s [M  Loading...      ()   ]
(Contd.)

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Betting on Lowe's

"I still view them [Lowe's] as the market-share grabber, and if you look at the results that Home Depot  reported today, and that Lowe's reported yesterday, the results do continue to suggest that...I think Lowe's is the better play here."

Brian Nagel, UBS Hardlines Retail Analyst

Nagel recommends: Lowe's [LOW  Loading...      ()   ]

© 2012 CNBC.com


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