5 Stocks to Buy to FIGHT INFLATION | Summary and Q&A

TL;DR

Investing in companies like MGM Resorts, Google, Facebook, Roku, and Avalon Bay Communities can be profitable during periods of high inflation.

Key Insights

• ✋ MGM Resorts can profit from inflation by raising room rates, resulting in higher profits.
• 💪 Google and Facebook have strong balance sheets and may make strategic acquisitions to enhance their technology.
• 🥶 Roku's free streaming services and advertising model can thrive during inflation, as the demand for affordable entertainment increases.
• 👪 Avalon Bay Communities benefits from the housing shortage and the ability to adjust apartment rents to keep up with inflation.
• 🦔 These stock picks provide investors with potential strategies to hedge against inflation and capitalize on market trends.
• 🇨🇷 The advertising industry may thrive during inflation as marketers justify higher-priced products and seek to reach cost-conscious consumers.
• 😮 Real estate investment trusts focused on apartments, like Avalon Bay Communities, can be attractive due to the potential for rising rents and profits during inflationary periods.

Transcript

[Applause] one stock that you like if we do have high inflation i'll go first uh i've mentioned this one before as as sort of an inflation hedge that you might not think about but mgm resorts so this is a company where most of their expenses happen when you build the resort right that's when your billion dollar multi-billion dollar outlay happens i... Read More

Questions & Answers

Q: How does MGM Resorts serve as an inflation hedge?

MGM Resorts can benefit from inflation as it can raise room rates, leading to increased profitability. This is because the majority of their expenses occur during resort construction, and higher room rates translate to higher profits for the company.

Q: What makes Google and Facebook attractive investments during periods of inflation?

Both Google and Facebook have strong balance sheets, making them well-positioned for potential acquisitions. Increasing inflation may create opportunities for these companies to acquire smaller firms and enhance their overall technology.

Q: Why is Roku a potential investment during periods of high inflation?

Roku's free streaming services and advertising-based model make it a viable investment during inflationary periods. As people face higher expenses, the demand for affordable entertainment may increase, benefiting Roku. Additionally, marketers may need to justify higher prices compared to competitors, creating more opportunities for ad revenue.

Q: How does Avalon Bay Communities benefit from inflation?

Avalon Bay Communities is a real estate investment trust specializing in apartments. It can reap returns from the housing shortage, which is independent of inflation. Additionally, apartment rents tend to keep up with inflation year after year, allowing the company to adjust rents upward within a year for all units in its portfolio.

Summary & Key Takeaways

• MGM Resorts is a potential inflation hedge due to its ability to increase room rates, resulting in higher profits.

• Google and Facebook are attractive options as they have strong balance sheets and can potentially make strategic acquisitions to improve their technology.

• Roku, with its free streaming services and advertising-based model, may benefit from rising inflation and increased demand for affordable entertainment.

• Avalon Bay Communities, a real estate investment trust, can generate returns from the housing shortage and adjust apartment rents to keep up with inflation.