lessthaniv Posted February 17, 2009 Posted February 17, 2009 Hi Everyone, Although we are currently engulfed in a period of asset devaluation, I suspect a major repercussion of today's governmental spending will be inflation. Therefore, I am interested in learning more about asset classes that traditionally do well in an inflationary environment. In today’s market, much discussion is circling on high yield investments be it preferred shares or high yield debt. What are some ways that we can hedge the risk of inflation in order to protect the integrity of today's investment in these types securities for the future? All thoughts welcome!
UhuruPeak Posted February 17, 2009 Posted February 17, 2009 Leverage would be your friend. Think rental Real Estate for example (or a REIT if you don't want to manage yourself). Others will want Gold/Silver, perhaps we can at least agree on the mining companies: they have large assets and fairly stable depreciation/amortization levels. Any company who hedges its costs far into the future would be a good candidate too, imo
Guest kawikaho Posted February 18, 2009 Posted February 18, 2009 Definitely debt. Get into a mortgage now when the rates are low. GLD/Silver is looking good. I just check the TIPS bond markets to see what the market expectation of inflation is. Right now, it's not good. They are not expecting inflation, and expect deflation. I'm wondering, in a deflationary environment, which is my biggest concern, what's the best investment?
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