How to Protect Your Portfolio from Inflation

Plus: How immigration has been good for the economy, what to watch in Nvidia’s earnings, and Morningstar’s “Why.” [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=54403&elqTrackId=f17a5964609743d6896fb5bb53679110&elq=0a79abfd439b4a28ba00918e62470c38&elqaid=54403&elqat=1&elqCampaignId=27644) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] this week's newsletter: - [What to Invest in During High Inflation]( - [Why Immigration Has Boosted Job Gains and the Economy]( - [Softer April CPI Stops the Bleeding on Fed Rate Cut Hopes]( - [Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?]( - [Morningstar’s Why]( It’s been a while since I’ve broken out my Wall Street phrasebook, but this week I’m dusting it off thanks to what could be called a “relief rally” following the latest readings on inflation. The perceived buy signal came in the form of a slightly weaker-than-expected Consumer Price Index report for April. Was the report really that good? Probably not. What we likely saw was relief that for the first time in months the CPI wasn’t worse than expected. In the words of Morningstar’s chief US economist, Preston Caldwell, the news “stops the bleeding” around expectations for Federal Reserve rate cuts. You can find [our complete look at the CPI report, and Caldwell’s take on it, here](. With inflation back in focus, the question once again arises for investors about how best to account for high inflation in a portfolio. We’ve updated our look at the[best investments for when inflation is running hot](. That includes I bonds, funds, and gold. One of the key reasons inflation has remained sticky is the underlying strength of the economy, especially the jobs market. With traders so focused on monthly reports, it’s easy to miss the forest for the trees. One of the important high-level trends has been the role increased immigration has played in robust job growth. In this weekend’s must-read, [Sarah Hansen digs into immigration’s impact]( on economic growth and inflation. Meanwhile, yet another earnings season is drawing to a close. Last week, we looked at [five key takeaways from first-quarter earnings](. But before we say it’s a wrap, we still have the market’s big kahuna, set to report this coming Wednesday: Nvidia. To get ready, we look at [what Morningstar analyst Brian Colello]( will be watching in the semiconductor giant’s quarterly report. Before we close out this week’s newsletter, I want to spend a few words on Morningstar’s big 40th anniversary. My own experience here goes back some 25 years, first as an outside reporter and then for the last nine as an employee. I saw even before joining that Morningstar was not your typical financial services company. I highly recommend checking out this column from Don Phillips on “[Morningstar’s Why]( He joined the company in 1986 as our first mutual fund analyst, and he played a central role in establishing our mission and independent voice. That’s it for this week! As always, check out our [Markets page]( for our latest coverage, live stock market updates, and [our weekly calendar]( of key upcoming data and events. [What to Invest in During High Inflation]( [What to Invest in During High Inflation]( These inflation hedges can help protect your portfolio. Margaret Giles [Find Out More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [Softer April CPI Stops the Bleeding on Fed Rate Cut Hopes]( [Softer April CPI Stops the Bleeding on Fed Rate Cut Hopes]( Services inflation remains sticky amid the better news in the April report. Tom Lauricella [Why Immigration Has Boosted Job Gains and the Economy]( [Why Immigration Has Boosted Job Gains and the Economy]( Immigrants helped ease wage pressures and propped up spending. Sarah Hansen [Never Mind Market Efficiency: Are the Markets Sensible?]( [Never Mind Market Efficiency: Are the Markets Sensible?]( Not always, but it’s difficult to profit from that knowledge. John Rekenthaler [3 Assets That Might Not Diversify as Well as You Think]( [3 Assets That Might Not Diversify as Well as You Think]( Real estate, high-yield bonds, and cryptocurrency don’t always live up to their reputation as portfolio diversifiers. Amy Arnott [Tariffs On Chinese EVs Offer US Automakers a Chance to Capture Demand]( [Tariffs On Chinese EVs Offer US Automakers a Chance to Capture Demand]( The US remains on track to see 40% electric vehicle adoption by 2030. Seth Goldstein [3 Warren Buffett Stocks to Buy After Berkshire Hathaway’s Just-Released 13F Filing]( [3 Warren Buffett Stocks to Buy After Berkshire Hathaway’s Just-Released 13F Filing]( Plus, the stocks Berkshire bought and sold last quarter. Susan Dziubinski [3 Solid ETFs Off to a Slow Start in 2024]( [3 Solid ETFs Off to a Slow Start in 2024]( Medalists poised for a rebound. Ryan Jackson [Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?]( With a steady streak of beating earnings and huge AI growth, here’s what to watch when Nvidia reports. Brian Colello [Going Into Earnings, Is Target Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Target Stock a Buy, a Sell, or Fairly Valued?]( With a focus on discretionary spending and margins, here’s what we’ll be watching for in Target’s earnings. Noah Rohr [After Earnings and a Big Selloff, Is Shopify Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings and a Big Selloff, Is Shopify Stock a Buy, a Sell, or Fairly Valued?]( With expenses on the rise but its stock down 25%, here’s what we think of Shopify’s outlook. Dan Romanoff [After Earnings, Is Arista Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Arista Stock a Buy, a Sell, or Fairly Valued?]( With generative AI spending driving long-term growth, here’s what we think of Arista Networks’ stock. William Kerwin [After Earnings, Is Disney Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Disney Stock a Buy, a Sell, or Fairly Valued?]( With linear networks deteriorating, here’s what we think of Disney’s stock. Matthew Dolgin [After Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?]( With strong pricing power and sales growth of key drugs, here’s what we think of Lilly’s stock. Damien Conover [Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?]( [Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?]( A surprising drop in store traffic has Starbucks’ share price at 2019 levels. Oratile Matome [The Best REITs to Buy]( [The Best REITs to Buy]( These seven undervalued real estate stocks pay dividends and trade at attractive prices. Sbidag Demerjian [Damien Conover and Rebecca Springer: ‘We Are in a Healthcare Consumerization Moment Right Now’]( [Damien Conover and Rebecca Springer: ‘We Are in a Healthcare Consumerization Moment Right Now’]( Investing in healthcare across public and private markets. Christine Benz, Dan Lefkovitz [6 Top-Performing TIPS Funds]( [6 Top-Performing TIPS Funds]( Funds from iShares, Pimco, and Vanguard lead the inflation-protected bonds category Frank Lee [What’s Happening In the Markets This Week]( [What’s Happening In the Markets This Week]( Nvidia, Target, and Macy’s report as Q2 earnings season winds down. Bella Albrecht Chart of the Week [The Last Free Lunch in Investing?]( [The Last Free Lunch in Investing?]( Fallen angel bonds are risky for ETF investors, but the rewards could be worth it. Zachary Evens [Read More]( Share: [facebook]( [twitter]( [linkedin]( Recent Earnings [Walmart: Low Prices and Strong Digital Presence Drive Market Share Gains]( We plan to raise our fair value estimate of Walmart stock. Noah Rohr [Cisco: Positive Guidance and Splunk Inclusion Align With Our Long-Term Thesis]( Splunk added some inorganic revenue, and management raised its full-year guidance to include the acquisition. William Kerwin [Alibaba: More Positive Outlook Despite Mixed Results]( We have raised our fair value estimate for Alibaba stock. Chelsey Tam [Home Depot: Macro Factors Pinch Demand, but Long-Term Outlook Intact]( Home Depot stock still appears highly overvalued, and we suggest investors remain on the sidelines. Jaime Katz, Grace Na [Baidu: Advertising Weakness Offset by Continued Growth In Cloud Business]( We view Baidu positively, given its dominance in search-based advertising and its advantage in generative AI. Kai Wang [Morningstar Company Reports]( See More Get Top Stock Picks and Market Insights Every Week on The Morning Filter. Every Monday morning, Susan Dziubinski sits down with Morningstar Chief U.S. markets strategist Dave Sekera to discuss what's on his radar, new Morningstar research, and stock picks or plans for the week ahead. 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