One sector that can be bought as a hedge against inflation is the energy sector. The Energy Select Sector SPDR (symbol XLE), which uses the same stocks as the S&P 500 Index energy sector, is one of the ETFs that offers energy sector exposure. XLE's P/E ratio is about 14 times, which is reasonable, and as the demand for energy increases, the price of oil can increase and there can be a multiple expansion.
- How Markets Move
- from Winning with ETF Strategies: Top Asset Managers Share Their Methods for Beating the Market
- Publisher: Pearson Business
- Released: March 2012
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