Smucker chief financial officer Tucker Marshall noted during a conference call that the company has been able to offset increased costs for coffee and transportation with higher prices.
“We have done a lot to reduce promotional activity,” said Guess CEO Carlos Alberini, during a conference call with analysts. “We have also increased prices, and we have done this very strategically.”
A higher level of inflation — and the rising long-term interest rates and spiking commodity prices that are accompanying it — are also boosting banks, raw materials companies and energy stocks.
But stocks aren’t the only way for investors to profit from inflation.
Analysts at the Wells Fargo Investment Institute pointed out in a report this week that commodities such as gold, oil and agricultural products — considered real assets, or those you can see, touch and taste — have outshone the broader market by a wide margin during periods of high inflation in the 1970s, late 1980s and early 2000s. That could happen again.
“Oftentimes, real asset price increases are what fuels inflation in the first place,” the analysts said, “so we believe investing in these assets can work as a natural hedge against rising costs in our everyday lives.”