Topic: Growth Stocks

The Stock Pickers Digest Hotline – Friday, October 24, 2008

Article Excerpt

I still feel that government efforts now underway are likely to solve today’s financial crisis. However, these steps come at a price. My best guess is that we’ll see much higher inflation as a result of all this newly supplied liquidity, probably in the early part of the next decade. You should keep this inflationary potential in mind, but it’s a mistake to try to profit from it by loading up on Resources stocks. That’s partly due to the drawbacks of these stocks. They do provide a handy hedge against inflation. Before that coming bout of inflation arrives, however, you can expect highly volatile stock markets, volatile resource prices, and corporate breakdowns in the Resources sector. You should spread your investments out across most if not all of the five main economic sectors. But I plan to err on the side of too little rather than too much resource exposure in the next few years. TEMPUR-PEDIC, $6.78, symbol TPX on New York, reports…