Recently, Fed chair Jerome Powell startled investors as he warned that the U.S. may be in for more frequent and persistent supply shocks. Undoubtedly, these supply-chain shocks will make the Fed’s job a bit harder, as they look to find the right balance between fighting off lingering inflation and keeping employment in a relatively good spot. Indeed, supply shocks could give way to another big wave of inflation and some pressure on employment.
In any case, for those with excessive exposure to such supply shocks, though, I think it makes sense to rotate to some of the names that don’t face as much risk.
In this piece, we’ll look at one name that I think can not only survive but thrive in the face of supply shocks.
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