We believe the geopolitical issue occurring in Ukraine will be short-lived. We also believe that amidst a high-inflationary environment, many U.S. Equities will prevail. We plan to continue buying and accumulating every time the Dow Jones, Nasdaq, and S&P 500 turns massively red. Keep in mind, interest rates are low. The Federal Reserve is propping up the economy. We are not in a recession. We are also not in a bubble. We currently believe that we are in a mild correction. America is unstoppable. Be greedy when others are fearful.
The following are stocks that could do well in a high-inflation economic environment:
- Kraft-Heinz (KHC)
- Coca-Cola (KO)
- Kellogg's (K)
- General Mills (GIS)
- Ford (F)
| Metric | KHC | KO | K | GIS | F |
|---|---|---|---|---|---|
| P/E ratio | 13.51 | 26.97 | 15.75 | 18.33 | 9.96 |
| Forward P/E ratio | 15.08 | 25.54 | 15.95 | 18.12 | 8.59 |
| Dividend Rate | 4.03% | 2.80% | 3.53% | 3.00% | 2.24% |
| Price to Book Value | 0.99 | 11.82 | 6.04 | 4.36 | 1.51 |
| Debt to Equity Ratio | 0.43 | 1.66 | 1.68 | 1.15 | 1.82 |
Disclosure: We own shares in Kraft-Heinz (KHC) and we currently do not own shares in Coca-cola (KO), Kellogg's (K), General Mills (GIS), and Ford (F).