- While inflation is too broad a factor to be fully captured by any one stock, my current top pick for an "inflation stock" is Chinese jeweller Luk Fook.
- Three factors I believe are likely to drive Luk Fook's outperformance in an inflationary environment are its balance sheet, luxury premium, and currently cheap valuation.
- Although this may be a more difficult name for some US-based investors to access, I believe that obscurity leaves it as an even better opportunity for those who do.
For further details see:
Luk Fook Holdings: Why This Small-Cap Is My Top Inflation Pick