Does Wall Street have anything to offer people who are worried about inflation and a loss in the dollar’s value? The answer is yes—for investors who can afford to leave part of their portfolio alone for ten years or so.
Very few investments prosper during inflation. Sooner or later inflation leads to higher interest rates, which are very detrimental to bond prices and usually cause sell-offs in stocks.
But stocks have an advantage over bonds: companies that issue shares can usually raise prices on the goods they sell in order to keep up with inflation. In contrast, people holding bonds receive only the agreed-upon interest payments, which buy less and less at the gas station and grocery store as time goes on. For stocks at least there is potential for recovery and some companies pay dividends to their investors in the meantime.
Here is a sample of American industries that receive income from foreign countries. If the United States has a spell of serious inflation, some foreign countries may be more fortunate. Income from foreign lands can help support the value of a company’s stock.
Auto parts makers (BWA)
Beverage makers (KO)
Cell phone tower operators (AMT)
Commodity chemical manufacturers (FMC)
Specialty chemical makers (IFF)
Computer parts (MOLX)
Computer software (ADSK)
Cosmetic makers (EL)
Drug companies (ABT)
Electrical parts and motors (EMR)
Electronic entertainment devices (ERTS)
Farm machinery (AGCO)
Food processors (HNZ)
Home appliances (WHR)
Home chemicals and supplies (CLX)
Industrial equipment (LECO)
Life insurance companies (MET)
Mining companies (AA)
Mining equipment makers (BUCY)
Office equipment (XRX)
Oil and natural gas-producing companies (CVX)
Oil well-drilling equipment (NOV)
Packaging and container makers (CCK)
Restaurant chains (YUM)
Semiconductor tool makers (AMAT)
High-grade tools and measuring devices (MTD)
Wireless network equipment makers (BRCM)
The ticker symbols in parentheses may or may not be good investments. They are intended only as examples of companies in the industries listed.

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