Real returns are being eroded as inflation soars — but fund manager Brian Arcese has a number of stock picks he thinks are effective inflation hedges.
U.S. inflation rose again in April , with the consumer price index increasing 8.3% from a year ago — higher than expected, but a slight ease from March’s peak. Meanwhile, the Federal Reserve’s preferred inflation gauge rose 4.9% in April from a year ago, a slower pace than March’s 5.2%, suggesting that price pressures c ould be showing signs of easing . Nevertheless, inflation remains at an elevated level, and continues to be a source of volatility for investors.
Mining stocks that Arcese likes include mines operator Pan American Silver , precious metals streaming company Wheaton Precious Metals , Australian rare-earths miner Lynas and Irish mining firm Kenmare Resources.
Kenmare Resources plc (LON:KMR) is an established mining company, which operates the Moma Titanium Minerals Mine, located on the north east coast of Mozambique.