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Buy Stocks That Benefit From Inflation

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    Cantor Fitzgerald Equity Strategist Sal Catrini on where to invest in today's market.

  • Duration 4:33
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After a wild -- this summer stocks.

Maybe in store for a very slow month of September -- -- treaty kick your FitzGerald equity strategist joins us now on south.

A first to an overall market's perspective from you but deep into the markets are kind of cooling off with -- to be flat today is that that the trend do you think.

-- let's say the easy answer we've been volatile I think we continue to be volatile.

We have a crisis of confidence which -- been said ad nauseam in the media.

That's why the market seemed to want the next Superman comment whether it's Obama's speech or Bernanke or trichet.

On the latest rumor making the rounds of speculation out there from very credible people -- -- -- Is that they can be -- huge intervention this weekend with all the central banks around the world the ECB the Fed.

The BOJ all coming into a major intervention may be additional QE.

As soon as this weekend doing that you -- Global intervention or -- like a European intervention.

A global intervention that's the latest speculation stored around the street the -- global monetary stimulus.

YouTube immunity thunder -- speculation but there yet and -- a QE has been part of that there's speculation.

It's a good journalists or we'll check it out let me assure you that's up -- for our viewers that.

With all the volatility yeah -- with all the markets and consider what we've had over the last few weeks use say that there are certain sectors that we should be looking for a move forward move incident with the economy.

Like in you like the miners.

Let you know I think the miners you -- kind of -- the inflation story I think I'm more warring way we see the word stagflation -- around.

Pepsi CDO put that word stagflation into into the conversation yesterday so you wanna buy things that benefit from inflation.

JM -- today raise prices the market true warning that we'll see if it works.

Patsy tried to -- crisis raise prices freelance story they had a hard time that saw -- sectors I'm looking at a separate story I think high and consuming at Tiffany's the coaches.

I think you central banks continue to print money which people around the world's gonna get in those -- global source.

Okay if you like luxury you -- Tiffany and you also like us semiconductors as.

Wow you know I think I think that's more -- a short term trade but -- you source Cisco up today.

I think the San knees in particular oil and tech in particular been hammered the socks and down the -- to semiconductor and it has been down hard.

The -- was anticipating a -- of pre announcements we got some negative news this week got developed Europe.

And Fairchild -- but intelligence -- -- came -- yesterday Intel said the united the fact they're gone into those little back and -- so I think for traded -- -- semiconductors -- if you want a little risking your portfolio.

Right now I think you know.

It's that saying you know it's -- preservation of capital return on capital not return of capital when that kind of environment right now so there's a lot of fear out there -- a lot of dislocation.

The smartest guys I know the smartest -- the hedge fund guys.

While those guys are not trading.

Because the market the correlation -- stocks is just like one -- stocks are trading in baskets up and down.

And there and there also you know let's talk about cooling -- for a moment because they're also the IPO market has really changed we saw a lot of deals coming through the first half by the year.

-- you got a lot that are pulling back and -- we are looking at.

You know IPO market this is there is always been an interest to me to see the risk tolerance of of the overall market.

Interestingly enough that backlog of IPOs are now stands at a 150 which is a huge number that's the biggest since you know 2007.

But you know you have some sprinkles around the edges here from anecdotes and I -- the bankers don't expect September to be a stellar month.

So even though there's this huge backlog.

The markets -- back little it.

These in the press reports coupon which the big sexy one that people waiting for they can't to the road show this week in some of the press reports so if you know the market's looking for people to take risk again.

You know so the IPO market nothing -- that better than IPOs that do well -- IPO market picks up by the end of this year I think the risk council come back.

Not much time to have a different well I think that the IPO market is imperfect and -- perfect barometer of of risk tolerance but.

What I'd like as you -- you said would what would you like under this environment what what would you avoid.

Well you know.

As they said it's it's this is an extremely hard market to be a sector picker or stock -- stocks are trading with correlations of one.

Asset classes are trading.

In -- right so right now we are be buying inflation Jerry I would be very hesitant to buy companies that -- not passed on.

Price increases.

By and I'm not -- else like -- to highlight specific companies but I'm doing a great job.

Well welcome like you know -- -- it came out yesterday said listen you know we're having to stay inflationary environment.

Companies like that you wanna like seat all their price increase is passing on those -- wanna buy if not the and you know their time maybe maybe you short those companies and by an inflation hedge.

Talk of the CEOs announced nonsense human socket train thank you very much -- you -- you equities charges Kenner but.

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