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Inflation is at a record of 30 Years in November, which stocks sector will benefit from it?

Writer: Avner RoashAvner Roash

Updated: Jan 27, 2022


Inflation has shocked the nation. As food, housing, and energy price continue to climb, Americans are asking themselves “When will it end?” The recent CPI reported showed that year-over-year inflation surged to 6.8% in November. During times of change, there is also opportunity. One such company that aims to profit is HypeIndex. HypeIndex is the first machine-learning algorithm to detect sentiment changes in the market. Inflation and tech stocks are highly correlated, and this algorithm can help traders to capitalize on it using its proprietary machine-learning technology. We use state-of-the-art algorithms designed by top data scientists to figure out the trend, direction, and strength of various market signals.

Blindly betting on tech stocks may have worked in 2020, but 2021 is a whole different beast. Take Zoom, for example, which saw a parabolic rise in March of 2020 along with over stay-at-home tech stocks as well as recovery plays like airlines, hotels, and cruises. With the Omnicron variant looming around the corner and the federal reserve less dovish when it comes to monetary policy, investors can no longer assume that their tech stocks are a safe bet. In November, Zoom collapsed an astonishing 22%. Many similar stay-at-home tech stocks suffered a similar fate, such as Peloton. We believe the investor ‘spotlight’ has shifted to another sector, and while we still believe long-term in the vision of companies like Peloton and Zoom, the attention of wall street has shifted, and people have realized that it’s time to move on and find the next hot sector. Even tech stocks that were once considered ‘bulletproof’ have fallen lately, with the Nasdaq QQQ taking a nosedive over the last week. HypeIndex was designed exactly for this purpose: To scout out the new and exciting trends and to assist retail investors in capitalizing on these before wall street takes notice. History tends to repeat itself; do you remember what happened in 2001 when the dot-com bubble burst? Investors who identified the behemoth that is e-commerce made off with the majority of the profits in the end. Some of these companies like Amazon ended up in ‘stealth’ mode, forgotten after the big bubble burst, only to have a huge surge in price years later.

HypeIndex specializes in looking for those ‘hidden gems’ among the big names. The kind of names that if mentioned, leave people scratching their heads. They aren’t easy to uncover, but they silently drive a large fraction of the overall market gains. One such ‘hidden gem’ sector is cloud computing. As the world shifted to work-at-home during the pandemic, cloud stocks saw renewed investor interest. You may have heard of companies like Oracle that rose 33%, but have you heard of DataDog, that rose a whopping 232%? Or how about Digital Ocean which also rose exponentially? If you bought the big names you did fine, but by following the hidden gems recommended by HypeIndex you would have made out even better. So, what sector are we looking to drop money on in 2022? Believe it or not, it’s not tech, it’s not e-commerce, and it’s not energy. It’s real estate. 2022 will be the golden year for real estate, a market estimate of over $52 trillion USD! Real estate is a popular choice because not only because rising prices increase the resale value over time, but because it can provide passive income to investors and dividends. As the value of properties rise due to inflating material costs, so does the amount of rental income that is earned. We are now witnessing the fastest rent rate increases in the last 20 years. Fixed cost mortgages help to mitigate some of the negative inflationary pressure on the housing market, and allows purchasers to protect themselves from an ever-rising cost of living across the economy. One of the best ways to invest in real estate is through a REIT. What is a REIT? A REIT is a real estate investment trust company that invests in real estate on behalf of the investor. Some of the qualifications it takes to be a REIT are: REITs must distribute at least 90% of their taxable income to shareholders. This is the most well-known characteristic of REITs and why they generally pay above-average dividend yields. Most REITs choose to pay out all their taxable income.

REITs must invest at least three-fourths of their investable assets in real estate or related investments.

REITs must derive at least three-fourths of their income from these investments.


HypeIndexes objective is to find these gems for you: The datadog of real estate, the Tesla of REIT’s, etc. Our algorithm makes it easy to identify and capitalize on these early trends, saving retail investors time and money over the long run. THIS is where the big money is to be made in 2021. Sign up here today



 
 
 

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