Everyone has got their eyes on inflation at the moment. It is a concern for investors, of course, but now we are seeing a decrease in core inflation.
Logistics and transport companies worldwide are moving fewer goods around the world, and China is in deflation. Is inflation really the problem now for investors?
What is the real concern? How much profit is being made. Look at which companies are succeeding despite inflation issues. We have companies like Microsoft and Amazon following the tech boom, energy companies that are showing profits and will continue to grow their profits as global energy demands increase and infrastructure, as governments are rebuilding to boost the economy – In the US and the UK, elections are on the horizon, and governments are pouring money into infrastructure to promote the image of political parties.
Nigel Green, CEO, deVere says, ‘If you want to invest now, don’t have your eyes on inflation, have your eyes on companies that are actually making money.‘
His opinion is to focus on companies that are currently making money and have the potential for even more profits in the future.
