«Ride the inflation wave with these stocks.»

Traders,

When inflation spirals out of control, commodity and commodity-related stocks boom. This includes crude oil, gold, silver, copper, steel, and aluminum. They all get bid to the moon, which benefits any companies that do business in commodities. From a sector perspective, you’ll see Energy (XLE), Basic Materials (XLB), and Metals/Mining (XME) climb.

Here are the stocks that have been popping in my watchlist in sympathy with the strength: Freeport-McMoRan (FCX), United States Steel (X), Alcoa (AA), Nucor (NUE), Newmont Mining (NEM), Souther Copper (SCCO), and Cleveland Cliffs (CLF).

And that doesn’t include the broad swath of energy companies that have been on the move. The last time these sectors were leading was at the end of the 2003-2007 economic expansion. In late 2007 when the broader stock market started sinking, money continued to flood into both XLE and XLB.

We’re seeing echoes of the same behavior today. If these names aren’t already on your radar, add them.

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