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Top sectors amid inflation
#1
Worth the 10 minute read -

So which sectors win and lose during inflation waves? - https://www.fidelity.com/insights/market...or-returns

- Scoot
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#2
Good read indeed.
I'd be careful going to deep into energy right now though. Two reasons really, firstly, I think the story in the energy sector is very different now. Now I'm not saying they will underperform, I'm just saying that there are other, possibly bigger, things going on in in the energy sector than just inflation.

Secondly, the prices of oil, gas and electricity have already shot up quite dramatically. Of course anything is possible, but now that inflation is very much the focus of governments and central banks, I don't see them wanting to let energy prices run significantly higher. That would be very bad for the economy and for the wallet of the voters.
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#3
Perhaps (likely IMO) the easy money has been made in oil stocks, but I'm not sure what governments are going to do about pricing in the near-term. Discouraging production years in advance of actually having a viable alternative isn't working for them. They can hope for more production and eventually that will happen, but major producers have no incentive to cut their own throats. There aren't enough strategic reserves on the planet to get prices as cheap as most politicians wish they were. They made their bed and I see no scenario where oil isn't expensive for all of 2022.

That said I won't overstay my welcome. I'm not giving back the easy money.
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