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Exposure to inflation scenario


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Based upon the current mixture of FFH's portfolio, would the portfolio underperform signifciantly if the US has moderate inflation and equity values increase?  In doing some of my re-reading this appears to be what is happening.  The deflationary forces are being offset by QE and low Fed interest rates.  This by the way is what Fisher's debt deflation theory would is the less painful way out of a deflation (in effect reducing the value of debt). 



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Good question that every decent investor is asking these days...

I belive your macro mild inflation scenario, which seems seems neutral/negative to FFH cuurent holdings.


I believe their equities give "us" some protection as dues their relatively short duration debt, yet clearly they have bought into a more bearish economic scenario than seems to be today's probable outcome.


My 2 cents is that FFH is a hold/buy for the portion of your capital to have for a more defencive outcome, very possible over a one or three year time frame. As stated wisely by many we need some inflation exposure yet that is popular and fairly expensive now. FFH is for defense at a resonable price based on how they are thinking. Also fine regadless of the outcome from a longer term perspective.


thanks to all for their efforts here.


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