Have you seen the prices of, well… anything lately? Oooof.
The Federal Reserve sure isn’t helping anyone with the inflation running wild everywhere. In fact, I expect the Fed made it worse this week by announcing its plans to accelerate tapering its bond purchases next month — the market reacted by dropping about 400 points.
However, that’s got me thinking about the long-term stocks set to benefit from inflation.
I’m a strong believer in a picture being worth a thousand words, and the chart and report WealthPress Senior Strategist Roger Scott showed me about the top 10-15 best-selling cars right now has me floored.
They weren’t exotic or sports cars like you’d think… The top-selling cars are everyday vehicles like the Toyota Tundra.
This report was based on 460,000 data samples, and it showed that the sticker prices of new and used cars — between the years 2020-21 — changed in a massive way…
About 90% of used cars now cost more than new cars by an estimated $1,000-$2,000…
In light of that information, we have two auto stocks set to benefit from inflation… and a couple of other stocks every investor on Wall Street should consider buying.
2 Long-Term Stocks Set to Benefit from Inflation
CarMax Inc. (NYSE: KMX) and Advance Auto Parts, Inc. (NYSE: AAP) are two of the best auto stocks to buy for the long haul during this inflationary time.
CarMax is a used vehicle retailer that’s been making daily gains as of late.
KMX is up 50-plus percent over the past year, and earnings estimates have been better than expected each of the past four quarters. Roger expects its price to reach the $170 level over the next three months.
Roger, however, has an even more specific — personal — reason why this stock has been one of his favorites to look at now.
He recently sold one of his Jeeps and bought a Toyota 4Runner. Carmax gave him $4,000 more than any other car dealership cared to offer. And he’s not the only one who’s had a great experience with them…
The company has a lot of margin and it’s smart with the way it uses it — KMX just wants more inventory while there’s a shortage of new and used cars. Remember, new cars that require semiconductor chips can’t get produced when there’s also a shortage of chips.
AAP is another stock set to benefit from inflation… It’s also a leading automotive aftermarket parts provider, and it serves both professional installers and do-it-yourself customers.
Hell, it’s been doing so well as of late that it’s seen gains of over 50% in the past 12 months…
The reason why we like the idea of going long on these two auto stocks is because cars won’t be going anywhere anytime soon — people are still going to be driving, leasing and buying them.
And the price of cars isn’t going down for a loooong time, so we might as well get into the trade before everyone else gets a clue.
However, on the other side of the market, we noticed some informational technology stocks that could be setting up for a major reversal…
But before we get into that, I want to talk about the nine — yes, nine — trades I expect to soar in December with the year-end institutional money flow I see moving. Click here to learn how to get in on these Monthly Money Flow Elite trades.
Watch the video below to learn more about the stocks set to benefit from inflation, and the nine new trades I released on Friday.
Roger and I also discussed how the Fed is doing everything a bad trader would… how solar stocks could be coming back to life… and how we see December playing out.
P.S. Every single month, the big hitters on Wall Street tip off what stocks they’re going to pile into…
I’m talking about a signal as clear as day that’s already hit on month-long paydays like 105%… 201%… and even 423%.
As I’m about to show everyone, once we’ve placed our trades early in the month, the hard part is done because Wall Street takes over and does all the heavy lifting for us…
Buying up shares and pushing prices higher…