Inflation is now at problematic levels, 8% in the US, 3.5% here and the thing is, it didn’t have to be like this. This week’s budget $8.5bn cash splash from our own Federal Government and the massive multi-trillion dollar fiscal stimulus packages highlight that this is not going to go away.
Today we celebrate our 100th issue of our Blue Chip Value Report and Rich covers off on what you need to do to protect your portfolio from rising inflation. He showcases this week’s Blue Chip Value Portfolio and our 110 stock research rundown of Small Caps.
I’ll give you one reason to hunt for value: Sleep, or for those insomniacs, Contentment. That’s what Blue Chip Value provides for subscribers. It’s no accident the Blue Chip Value Portfolio’s recent outperformance of the benchmark S&P/ ASX 200 Index is accelerating. In the past two years, Blue Chip has returned 34.9% versus the Index’s 31.4%.
When the Russian military fired shells at a nuclear plant in South-East Ukraine earlier this month, the gold price spiked US$100. Gold is the ultimate safe haven because it is the only asset that acts as a hedge against inflation and conflict, and it isn’t somebody else’s liability. Under the Radar believes the best way to get access to gold is to buy quality gold producers.
Supply constraints emanating from the boycott on Russian product on top of increasing demand means that the oil price is getting squeezed. Under the Radar Report said it would go to US$100 a barrel. We now think it will go much higher.