How To Play Warren Buffett’s Inflation Warning

Warren Buffett said on CNBC earlier Monday that the Fed’s expansionary measures “are potentially very inflationary” and the result could be “worse than the 1970’s inflation”.

If you’ve been following my research, this is nothing new. I’ve been warning you about a 1970’s style inflation tsunami for some time.

But now that the Oracle of Omaha is saying it on national television, Wall Street might start to catch on.

And if you want to make FAT profits in the next 12 months, you need to beat them to the punch.

Beef-up your portfolio with shares in companies producing (or exploring for) hard assets that appreciate in an inflationary environment.

Gold… silver… even copper and nickel, are great inflation hedges. Oil also performs very well.

I’m backing up the truck with stocks in these industries. And you should be too.

Look specifically for small companies sitting on (or near) discoveries that are marginal to uneconomic to produce at current prices.

As the underlying commodity price rises, these types of projects gain value exponentially… making shareholders like you rich in the process.

There are tons of screaming buys out there right now. Especially in the oil sector.

Many quality companies were hammered down 90% or more in the past 6 months. Oilsands Quest (BQI), a company sitting on billions of barrels in Canada’s oil sands, comes to mind. You should load up on bargains like that while you can because…

Inflation is already creeping into the system.

January’s Producer Price Index (PPI) hit 0.8%, four-times the markets 0.2% expectation. And the Consumer Price Index (CPI) was double expectations at 0.2%.

It’s only a matter of time before Wall Street institutions figure this out and jump all over these stocks.

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