Cheryl Pate’s top ingredient for an ‘inflation-proof’ portfolio

The rapid surge in inflation is making it all the more important for investors to protect their portfolios against it, and Angel Oak Capital Advisors’ Cheryl Pate says “financials” is the way to do it.

Pate’s remarks on CNBC’s ‘The Exchange’

Pate is convinced that banks and consumer finance companies will outperform in an inflationary environment. On CNBC’s “The Exchange”, she said:

On Wednesday, the Bureau of Labour Statistics said prices for U.S. consumers jumped 6.2% in October – the hottest reading since 1990, putting more pressure on the central bank to reconsider tightening.

Names Pate likes in particular within ‘financials’

A few names that pop out to Pate within “financials” include American Express, Capital One, Ally Financial, and Silicon Valley Bank. She’s confident these stocks will perform well as the U.S. Federal Reserve starts to raise rates but said “there’s more to the story”.

During the same interview, Independent Advisor Alliance’s Chris Zacarrelli agreed it was time to take up positions that could protect the portfolio against the rising inflation. The Financial Select Sector SPDR Fund is up more than 30% this year.