Tineke Frikkee 5.0 1 idea

The equity research head states that in an inflationary environment, her firm invests in companies with "good pricing power" to continue to thrive. A persistent inflationary shock from energy prices will compress margins for companies unable to pass on costs. Firms with strong pricing power will be relative winners, demonstrating resilience. WATCH for and potentially favor equity sectors and companies with demonstrable pricing power, as they are better positioned to navigate the current stagflationary risk environment. A deep demand destruction scenario would overwhelm any pricing power, hurting all cyclical companies.