Powell rekindles the inflation trade with comments. Here’s what’s working in sell-off

Federal Reserve Chair Jerome Powell speaks during a Senate Banking Committee hearing on Capitol Hill, Washington, December 1, 2020.
Al Drago | Pool | Reuters

The inflation trade, mainly in commodities, picked up steam on Thursday after Federal Reserve Chairman Jerome Powell said he expects some inflationary pressures ahead, triggering a jump in bond yields.

Commodities have been on a tear lately on expectations for inflation and Powell's comments rekindled those concerns and the trade. Energy and commodity ETFs were among the few securities in the green on the board.

"Commodities remain the best inflation hedge," Goldman Sachs said in a note to clients earlier this week, where the firm predicted 15% returns for the group from here.

Here's a review of some of the popular inflation plays working right now:

More In Investing trends

CNBC ProRetail investors are buying these stocks into the reopening, UBS says
CNBC ProThese ETFs are winners if Biden’s infrastructure plan is passed, Bank of America says
CNBC ProCredit Suisse picks EV and energy stocks for a piece of the $2 trillion infrastructure plan