SPDR Gold Trust (ETF) (GLD), Transocean LTD (RIG): Investing in Inflation

The best places to profit from this scenario are in mining stocks and deep-sea oil drillers. Namely, Southern Copper Corp (NYSE:SCCO) and Rio Tinto plc (ADR) (NYSE:RIO) for mining stocks since they focus on industrial metals and have less exposure to gold than other competitors. In particular, Southern Copper Corp (NYSE:SCCO) has a large focus on copper, of course, while Rio Tinto plc (ADR) (NYSE:RIO) operates a diversified mining portfolio of different metals, and also sports an appetizing dividend. My favorite stock for deep-sea oil drilling is again, Transocean LTD (NYSE:RIG). Not only are earnings expected to rise around 12% in 2013 and 35% in 2014, but this firm operates with an economic moat and continues to trade at a good discount.

Foolish Conclusion

The word inflation automatically dispenses feelings of fear into investors, but rather than running from these fears, investors should welcome the opportunity to profit from the above-mentioned scenarios. Whether we want to admit it or not, inflation in some capacity will hit the United States in the coming years, but if you prepared for it to occur, fear should be the last thing you feel.

The article Investing in Inflation originally appeared on Fool.com is written by Chris Johnson.

Chris Johnson has no position in any stocks mentioned. The Motley Fool owns shares of Transocean. Chris is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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