Entering text into the input field will update the search result below

Legendary Economist Issues Stark Inflation Warning: Top Inflation-Proof Dividend Stocks


  • Renowned economist and former Treasury Secretary Larry Summers recently issued a stark warning on inflation.
  • He believes inflation is going to get a lot worse before it gets better and that policy-makers have mishandled the situation.
  • We share three top inflation-proof dividend stocks.
  • Looking for a portfolio of ideas like this one? Members of High Yield Investor get exclusive access to our model portfolio. Learn More »

Increasing Inflation Rate Arrow Graph Concept

IvelinRadkov/iStock via Getty Images

Inflation is soaring. After beginning 2022 at 40-year highs of 7.5%, it has only gotten worse since then. The global economy is facing a perfect storm of lingering COVID-19 related supply chain challenges, massive stimulus payments creating distortions across

Access Our Exclusive Interviews With ET, GOLD & UNM!

We recently shared exclusive interviews with ET, GOLD & UNM with the 1,200+ members of High Yield Investor and you can get access to them for free!

Simply join us for a 2-week free trial and you will get instant access to all our exclusive management interviews, Top Picks of the moment, 2 Model Portfolios that have crushed the market since inception, Course to High Yield investing, Tracking tools, and much more. You won't be charged a penny during the free trial, so you have everything to gain and nothing to lose!

Graphical user interface Description automatically generated

This article was written by

Samuel Smith profile picture

Samuel Smith is Vice President at Leonberg Capital and manages the High Yield Investor Seeking Alpha Investing Group.

Samuel is a Professional Engineer and Project Management Professional by training and holds a B.S. in Civil Engineering and Mathematics from the United States Military Academy at West Point and a Masters in Engineering from Texas A&M with a focus on Computational Engineering and Mathematics. He is a former Army officer, land development project engineer, and lead investment analyst at Sure Dividend.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ET, GOLD, UNM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (41)

Samuel Smith profile picture

Thank you for reading! Let me know if you have any questions.

If you enjoyed this article, I would be greatly appreciative if you would click the "Follow" button.

Also, please note that we are currently sharing all our Top Picks for 2022 with the 1,200+ members of High Yield Investor, and you can access them for free.

We are so confident in what we offer that we allow you to join us with a 2-week free trial. You won't be charged a penny if you cancel during your free trial so you have everything to gain and nothing to lose.

Get started here: seekingalpha.com/...

If I can help with anything, let me know.
@Samuel Smith , Inflation is very bad and has not been a factor for almost 35 years, What we need is a Paul Volker. The Fed is a Joke and Janet Yellen is even worse. Too many investors are way to young to remember Jimmy Carter, Stagflation, etc.

Interest rates are clearly headed much higher. Housing values will get hit hard when lending rates move much higher. Affordability will cause housing prices to decline due to payments moving substantially higher.

Every generation or so it seems we need to be reminded Socialism does not work. The Fed, through easy money since 2009, has kept the economy on life support. The Plug is being pulled due to outrageous spending that caused inflation and now out of control due to very poor Policy for several years regarding Energy. Crisis after Crisis.

Things are about to get a lot worse. Once the selling on Wall Street begins, it will be a 30% downdraft in 6 weeks.

Larry Summers, a Huge Liberal, couldn't be more correct.

The Best investment is Cash. Ride the yield curve up. Get back in on the other side.
Samuel Smith profile picture
@rj4103 very possible. I don't think cash is the best investment here as you are going to get hammered through inflation. Perhaps shorting the market or investing in things that profit from rising interest rates and/or volatility is better.
@Samuel Smith , I am in a variety of Energy stocks for the commodity hedge. If I didn't believe the market is headed for a HUGE correction of 30%, I would agree with you about cash/inflation. But if I am correct, buying high quality firms after the downturn will be the best return you can make over the next 10 years.

The big difference in the market today vs 20/30/40 years ago is the huge amount of invested monies in instruments like ETF's. By definition, these and other related instruments/funds are always fully invested. Same with most 401k investment options to select from.

When the wave of sell orders hit, it is a one way street.

Too many negatives for this not to happen. P/E ratios will come down from current high levels. Fed is so far behind the curve. Russia has screwed up trade in too many commodities. US govt policies are too far left regarding spending, just to name several.

Market has been propped up for too long by Money flows all going one way. When it turns, you want to have alternatives/flexibility.

Hate to be a Bear, but, are their any positive catalysts to make the market go higher--technical or Fundamental?
The renowned Larry Summers?

How can I block you so that I never see your articles again?
Samuel Smith profile picture
@The Invisible Hand Wins This was not meant to be a positive or negative piece on Larry Summers. The point was that a leading Keynesian economist is now siding with Austrian economists in opposing massive government money printing and a too-low interest rate policy. That should make people sit up and take notice.
LittleMilk profile picture
You’re a rockstar mate!
Samuel Smith profile picture
@LittleMilk thanks so much for the kind words!
E.D. Hart profile picture
Check out Western Copper and Gold for incredibly cheap copper exposure. WRN www.westerncopperandgold.com/...
I like ET and MMP in the same arena, I also like UNM and UVE as well in their same respective arenas.
Samuel Smith profile picture
@Kajoobies88 We have invested in all four of those at various times at High Yield Investor and have profited greatly from each.
ResilientRN profile picture
TEF & ENLAY have been doing well, thanks.
Chancer profile picture
Regardless whether or not you agree with Larry Summers, I do respect him for being independent of the lockstep allegiance demanded by all Democrats to speak only in support of their agenda. Summers openly and freely speaks his own mind.
ET looks to be turning the corner (finally).
You are quickly becoming one of my favorite reads. Every time you write an article about ET I buy more. Inflation is now in everything and getting it out will be a massive undertaking. Washington only has wrong solutions to the problems. I think hedging with your stock picks is the best way to ride out this mess. Thanks for your insight.
Samuel Smith profile picture
@GreenBoyz so glad to hear that! Thank you for your readership.
In the causes for inflation, I saw no mention of demographic issues, notable the long-term lack of growth in workers, which could well increase and extend inflation.
Samuel Smith profile picture
@Fredtr1 yes that is certainly a long-term factor.
craftbrewinfo profile picture
“Some are now even predicting the death of globalization and globalism”

I would welcome that !
Samuel Smith profile picture
@craftbrewinfo In some ways I would too, though I do think a certain degree of global trade creates a lot of value.
mikekilohotel profile picture
Great article...thank you for covering Summers' comments. With dollar destruction inevitable as a result of US policy (endless debt fueled consumption), there will come a time when US is required to operate like other borrowers...borrowers generally don't get to set interest rates...not even short term rates. FOMC target rates may be a rude joke some day. Life in the US has been good while it lasted and lets hope we get another cycle or two out of it but unfortunately someday the lenders will have their day and force some austerity on the people (our grandchildren). We may now be seeing some of the limits of global growth...limits that are associated with availability of basic resources. Always long staples (energy, resources, finished goods) as they will track inflation over the long term. Will check out your recommendations!
Samuel Smith profile picture
@mikekilohotel thanks for the kind words and sharing your perspective!
purpleboarder profile picture
Regardless of your opinion about Larry Summers, the author has a point. Inflation is here and getting worse. Mid-stream companies are a no brainer. Banking (mine are Canadian) and VISA will also do well in the environment of increasing interest rates.... Long V, ENB, XOM/CVX, BNS, RY....
Completely agree with you regarding ET! Good luck to all.
@ParkEast ET? There are much better midstream options with better management
Samuel Smith profile picture
@bill.ott not trading at such a steep discount
Solojif1 profile picture
Thanks for the article.
Excellent Article Sam, have a great weekend!
Samuel Smith profile picture
@JoeMonte Thank you - same to you!
Harvard Radical
@Ginger234 Well, the point...
... is that if even he is saying pump the brakes... maybe the brakes should be pumped.
Kershaw profile picture
@r09traveler unfortunately the brakes should've been pumped earlier than what we've seen from the Fed this time around. If they can truly pull off a soft landing, they will deserve an award!
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.