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Investors are starting to position for inflation. Here are some of their favorite trades

Traders on the floor of the New York Stock Exchange.
Source: NYSE

A growing cohort of Wall Street strategists believes it's time for investors to position for a new inflationary regime.

Catalysts for higher inflation are piling up — an economic reopening, $1.9 trillion more fiscal stimulus and a Federal Reserve willing to let the economy run hot. Inflation has the potential to change the way people invest because price pressures erode investors' capital, make companies' future profits less valuable today and could lead to higher interest rates.

"The market has become much stock selective, and perhaps it is the dawn of the active manager at this point," said Quincy Krosby, Prudential Financial's chief market strategist. "The market is adjusting to a number of changes including the normalization of the economy and a potential pickup in inflation."

Here are the top trades to hedge against inflation, according to strategists and investors.

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