7 Best Ways to Play the Reflation Trade

The market is in the early stages of what appears to be a rotation into reflation-friendly stocks. Here are seven ways to play this shift.

Concept art of inflation
(Image credit: Getty Images)

There's inflation. There's deflation. And now, there's the reflation trade.

We all have a pretty good idea of what inflation is. When demand outstrips supply, prices rise. This is often, though not always, driven by Federal Reserve policy. But the essence is an excess of demand (or shortage of supply) that forces prices to rise.


Data is as of March 7. Fund yields represent the trailing 12-month yield, which is a standard measure for equity funds, unless otherwise indicated. Stock dividend yields are calculated by annualizing the most recent payout and dividing by the share price.

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Charles Lewis Sizemore, CFA
Contributing Writer, Kiplinger.com

Charles Lewis Sizemore, CFA is the Chief Investment Officer of Sizemore Capital Management LLC, a registered investment advisor based in Dallas, Texas, where he specializes in dividend-focused portfolios and in building alternative allocations with minimal correlation to the stock market.