[Charts] Inflation Busters and Turkey Time

Lou Basenese

Friday, November 19, 2021

It’s Friday in the TTD Nation.

So what, you say? Well, welcome! You must be a newbie.

Here’s the dealio...

Every Friday, I curate a handful of graphics to convey some important investment insights.

All it takes is a quick glance — and you’ll be up to speed and poised to profit.

In this week’s edition, we’re diving into the single biggest fear for investors and companies right now. Then, it’s onto some more uplifting data for the week ahead.

So without further ado...

Fear Factor

Hands down, the biggest fear for investors and companies right now is inflation.

Especially after consumer prices ticked 6.2% higher in October, the largest year-over-year increase since 1990.

And as it turns out, that’s not the only inflation-related record...

The number crunchers over at FactSet found that 285 of the 500 companies in the S&P 500 mentioned “inflation” during their earnings calls for the third quarter.

And as you can see, that’s way higher than the five-year average of 137 mentions.

(click image to enlarge)

Here’s the thing: another 40 companies still need to report results. So that record number is going to climb even higher.

But fear not! Seriously.

How can I be so out of touch? It must be because I own tons of gold, right? Wrong!

I’m not overly concerned because, as I explained long ago (see here and here), there’s a simple way that investors can combat inflation worries:

Simply invest in the one sector of the market that always outpaces inflation by a wide margin — tech.

And guess what? As the chart below shows, as soon as inflation became a legit concern, tech stocks, as represented by the Nasdaq 100, started outperforming.

(click image to enlarge)

That’s not going to stop anytime soon. So instead of fretting over inflation, bet on it.

And you know what else you should bet on? Stocks rallying during the holiday-shortened Thanksgiving week…

Stocks Love Turkey Time

While our attention turns to turkey, stuffing, and pumpkin pie — but definitely not that mass of jiggly cranberry matter — we should also expect our portfolios to get a little stuffed, too.

As you can see, the holiday-shortened week has led to increasingly higher gains over the last two decades.

(click image to enlarge)

So if you’re looking to time your purchases, buy any dips on Monday or Tuesday — and you likely won’t regret it. 

Ahead of the tape,
Lou Basenese
Lou Basenese


Tags: Inflation Thanksgiving

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