These Stocks Have Dealt With Hyperinflation For Decades (And Yet Nobody Wants Them)

Inflation is back in the news, with the cost of a typical Thanksgiving dinner skyrocketing and the overall consumer price index hitting 30 year highs.

Fears of hyperinflation are also driving virtually every asset class to the moon. Housing, crypto, gold, and broad market funds are all going up. But, interestingly, one group of stocks is actually falling in share price.

And it’s the only group of businesses that constantly deal with inflation, worthless currencies, and political turmoil.

What is this mystery asset?

Consumer packaged goods. These are businesses like Colgate, Procter & Gamble, Coca-Cola, Nestle, and McCormick. They sell household items like toothpaste, soda, and deodorant. Things that people regularly buy, and often need throughout their daily lives.

Additionally, these mega-cap companies are globally diversified and you can find their products in almost any country.

As a result, these companies are used to dealing with all kinds of currency and economic issues.

Here’s an excerpt I found while researching how Colgate deals with international sales in illiquid or hyper-inflated markets (source):