Anyone have ideas about how to protect oneself against the higher-than-average inflation we’ll likely experience in the next couple of years? I have a fair bit of cash and a fair bit of low-interest debt and I’m wondering if there are any easy no-brainer moves I could make to reduce my expected losses to inflation.
Less obvious ones include other precious metals, cryptocurrency, emerging market stocks, and certain foreign currencies. Diversification is usually helpful.
Why, exactly, are you expecting more inflation? Some of these might be better or worse investments, depending on your forecasts. For example, while EM stocks do relatively better when inflation is high, they also do best when growth is also high, and tend to perform poorly when growth is low, even if inflation is high.
Anyone have ideas about how to protect oneself against the higher-than-average inflation we’ll likely experience in the next couple of years? I have a fair bit of cash and a fair bit of low-interest debt and I’m wondering if there are any easy no-brainer moves I could make to reduce my expected losses to inflation.
The obvious inflation hedges are gold and Treasury Inflation-Protected Securities (TIPS).
Less obvious ones include other precious metals, cryptocurrency, emerging market stocks, and certain foreign currencies. Diversification is usually helpful.
Why, exactly, are you expecting more inflation? Some of these might be better or worse investments, depending on your forecasts. For example, while EM stocks do relatively better when inflation is high, they also do best when growth is also high, and tend to perform poorly when growth is low, even if inflation is high.