Inflation is rising so many people are thinking about what will be the best high inflation investment strategy. They are looking for assets that not only give them protection but may actually generate a profit during a period of high inflation.
In this video, I discuss different ways of protecting and profiting from inflation, including buying Inflation hedged bonds (TIPS) and thematic funds that aim to benefit from a high inflation environment. I will also show you which equity sectors have historically faired best in low, medium and high inflation environments.
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Timestamps
00:00 Introduction
00:50 Inflation Linked Bonds
05:48 Equity as an inflation hedge
07:53 Equity Sectors & Inflation
11:13 Thematic equity funds
#Inflation #Investing #PensionCraft…(read more)
HOW TO: Hedge Against Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
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PFIX has done well with rising interest rates
12:28 Do you have data on these sectors' performance in high-inflation environment? Please elaborate! All I hear is "in theory" "in theory" "in theory".
Show me data or at least explain the theory.
8:50 Quite useless because you didn't clarify what is considered as "high inflation". I see the data only goes from 1999 to present, during which inflation was always low. It's almost like the authors wanted to deceive because all the data on the S&P500 is there going back to 1871!
"Gold is erroneously considered to be an inflation hedge." Why erroneously?
If you believe inflation is short lived then forget about complex hedging strategies and buy a low cost index tracker etf, drip feeding as you have have cash available. I know it sounds so simple but yet historically it beats practically everything else including real estate…
The Feds 2 percent inflation target, just like the UK target is a joke…. Completely meaningless… The various central banks have been indeed asleep at the wheel and have rolled out a long list of excuses for not actually bringing inflation down to anywhere near the target.
The truth is that governments have been printing and spending like drunken sailors and all that borrowing will be easier to pay off if inflation is sky high…
Looking at these today, 10 months later, instead of protecting from inflation, these funds have all collapsed. For example, on the date this was posted, the VTIP closed at 52.47. As of today, 4/1/22, it's at 50.54. They should have been rising, given the inflation in progress. Instead, they are tanking. Especially today, they're all gaping down.
Truth is, when markets drop, bonds fall right along with stocks.
so when inflation occurs, I should invest in commodities, real estate/land, agriculture, metals, healthcare, and data research? am I right or wrong?? please, help me understand.
Where's your idea?
Wonderful video – my portfolio is currently being mangled by the "correction" and fear of inflation/rate hikes. I will shift toward those safe sectors and look at INFL – thanks!
Banks , Oil , GOLD LOL
Had to watch this one twice
mother of all bubbles
Please comment on SCHP v. TIPS v. CDs. Thanks. Btw, have learned much from your well presented clips.
This will become a classical.
If your crystal ball isn't working well, I think the best strategy is to be diversified. Own a bit of everything. Precious metals, equities, fixed income, domestic / international / emerging markets. Own a bit of it all.
Can you check Caracas stock market we have inflation 1000%xyear
Great analysis but this analysis is done, perhaps different than predecessors on a non-market driven (covid driven) recession for a market that was already going as bull for 10+ years. If there was no pandemic many was expecting a bear market and interest rates to raise anyway, for example if the bond market bubble would have been popped. So if those delayed bear markets to happen anytime soon and i feel the fed will go even negative interest rates and even more QE that would result even more inflation, hence the recovery for unemployment would go even to 7-8 years if not the unemployment targets are revised upwards
Excellent video, once again. My only criticism of this and most all your videos is the font size in your charts. Perhaps in future videos you could make them a little bigger so we can see them better. Readability is very dependent on the device and viewing distance. These days there is a wide range of viewing options, not to mention viewer eyesight, and readability suffers on some of them.
"Gold is erroneously considered to be an inflation hedge" ??? Please expand on this.
Dear Sir, Can pls do the same with data in 1970-1980?
Thank you so much. It would be amazing if you could do a video on or comment on quantative easing or money printing and the correlation to inflation. Mark Faber talked about QE quite a bit and how it was disatrous for the buying power of money (favouring gold as a currency).
Thank you for mentioning the y axis. This kind of thing is helpful for when we're viewing on a small screen like a phone and can't necessarily see all the smallprint. Discussion of what is on the X and y axis can be useful as a way to get our bearings before launching into the analysis.
REALLY LLIKE YOUR VIDEOS. VERY WELL DONE, SUBSCRIBED AND LIKED. You are explaining the entire process, usually I start at the balance sheet, or valuations then sentiment. But your view is taking it a step further and helping forecast by understanding the economy more robustly
If you don't need food, shelter or transportation, inflation just might run at 2% for you.
The quality of your content is probably beyond that of university lectures. Easy to digest. Good Job.
Very helpful video. Thanks a lot. Just subscribed. Would you be able to elaborate on why gold is not a suitable hedge against inflation? I have seen a lot of talk recently about how gold and silver are currently good investment choices and are set to increase in value significantly over the next decade in part due to inflation.
Why aren’t the median values in the box-plot for the “S&P500” (right most group in the box-plot chart) netting to zero for all inflationary conditions? What does the spread between those medians and zero tell us about the broader statistical analysis?
You've mentioned US domiciled ETFs before, but how is it possible for UK residents to invest in them without having to pay the 15/30% with holding tax?
Is there an ETF of Golden Butterfly portfolio?
Basically what you're saying is that during high inflationary periods, the non-discretionary spending does better than discretionary spending.
He should have listed TDTT tips 3 year. It has been doing great 8.11% total return in the last year. The expense ratio is a little high(0.18%) but worth it.
if you dont see inflation on the horizon what about growth?
are we headed for low growth, low inflation. The two often go together