Inflation? The US Federal Reserve think is transitory. In other words, this, too shall pass. But some Big Shots disagree.
Mohamed El-Erian says the Fed's inflation screwup will 'go down in history'
By: Clayton Jarvis | November 23, 2021
• Mohamed El-Erian says the Fed's inflation screwup will 'go down in history' — but he's using these 3 stocks to take advantage
If a prominent economist is right, the Federal Reserve’s reaction to skyrocketing inflation is “going to go down in history as one of the worst inflation calls.”
The Fed has said for months that inflation is a “transitory” trend triggered by the COVID-19 pandemic. Mohamed El-Erian, chief economic adviser at asset management firm Allianz SE, doesn’t agree.
"They got stuck on the narrative and held on to it for too long," El-Erian says in an interview with Bloomberg. "The result of which is they're looking at inflation that is much higher than they ever expected ... much broader than they expected ... and that's going to last even longer than they expected."
Fortunately, El-Erian has helped load his firm’s portfolio with several inflation-ready stock picks. If you’re looking for a safe way to invest your extra cash, here are three stocks that could keep or grow their value if inflation is here to stay.
