**This webcast aired on Wednesday June 16th, 2021**
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Throughout June, Hedgeye CEO Keith McCullough is hosting a special Real Conversations series with four leading market strategists: Inflation Tsunami: Investing During A Rising Inflationary Tide. Follow this link to get access to our other webcasts:
MORE INSIGHT WITH STEVE HANKE
Steve Hanke is the founder and co-director of the Institute for Applied Economics, Global Health, and the Study of Business Enterprise at Johns Hopkins. Hanke served as a senior economist in the Reagan White House and as an advisor to several nations’ governments. Currently, he is a senior fellow at the Cato Institute, chairman of a metallurgical supervisory board in Amsterdam and chairman emeritus of the Friedberg Mercantile Group Inc.
Watch last year’s “Real Conversation” between Hanke and McCullough: “COVID-19, Panicky Markets & The Economic Implications”…(read more)
LEARN ABOUT: Investing During Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
As the world grapples with the aftermath of the COVID-19 pandemic, inflation has become a hot topic of discussion among investors. Many fear that the unprecedented amount of monetary stimulus injected into the global economy will ignite hyperinflation, leading to a sharp increase in prices and a significant loss of purchasing power.
Amid this uncertainty, renowned economists Steve Hanke and Charles McCullough offer insights on how investors can protect themselves against the inflation tsunami.
Hanke and McCullough, who have a wealth of experience in navigating inflationary environments, recommend investing in assets that have historically proven to be inflation hedges, such as gold, real estate, and commodities.
Gold has been a go-to asset for investors looking to hedge against inflation. Its value tends to rise as inflation increases since it is viewed as a safe-haven asset. McCullough believes that gold could soar to $4,000 an ounce in this inflationary environment. According to him, it is not too late for investors to add gold to their portfolios.
Real estate is another asset class that can be a reliable inflation hedge. Hanke highlights the importance of investing in rental properties that can generate cash flow and provide a steady stream of income. In a high-inflation environment, rents tend to rise along with property values, providing investors with a double-edged benefit.
Commodities are also an attractive investment option in times of inflation. McCullough recommends investing in commodities such as oil, natural gas, and agricultural products, which tend to benefit from increased demand and higher prices during inflationary periods.
However, Hanke warns against relying solely on these inflation hedges. He recommends diversifying your portfolio across different asset classes, such as stocks, bonds, and cash, to mitigate risks and maximize returns.
McCullough also warns that investors should be aware of the risks of investing in stocks and bonds during an inflationary period. Inflation reduces the value of future cash flows, making it difficult for companies to finance their debt. In such an environment, stocks and bonds become riskier investments, and investors need to be cautious.
In conclusion, the threat of inflation is real, and investors need to be proactive in protecting their portfolios against the inflation tsunami. Hanke and McCullough’s advice to invest in assets such as gold, real estate, and commodities can provide a cushion against rising inflation. However, diversification is key, and investors need to be careful not to rely solely on these assets. The key to successful inflation hedging is to be informed, stay vigilant, and adapt to changing market conditions.
In hindsight Hanke nailed it
Steve Hanke is Professor Brain rotten apple
Won't the "V" be less of a problem once China realizes that federal reserve notes are not wealth management products? With China needing to produce RMB will the dollar bid be safe in the future?
When your taxi driver asks your opinion on inflation we might be close to peak inflation?
Powell is a toolbox
American Professors understand how many languages of 200 country in the World
If Professor in US learned more Knowledge,perhaps Covid-19 pandemic don`t outbreak in US
Because the US country has many Professor have Brain rotten apple like Steven Hanke has fueled the outbreak Epidemic in the US
This is two Professor Brain rotten apple
Tow Professor Brain rotten apple
Feb through march taxes got be paid back by april .should be enormous. Government give away .
What litigation quad are we in?
What happens to the clone when the anchor currency inflates… if the US inflates do we blow up the entire financial world
Japan also had deflation.
End the FED. Jail the banksters.
economics 101 from Professor Hanke and Keith is eye opening and interesting my business professor's in college would have been fired for teaching like this .
"You gotta be able to go both ways Steve, which you obviously do" rotflmao
Could he explain how bank reserves is currency?
The fed tried to jawbone the investing public into believing they would tighten sooner than markets expected ,by doing so they scared investors into royally screwing metals markets .So….F you Damn lying cheating Effing Fed!! If the fed were so stupid that they raised rates anytime soon,the stock market would totally crash,and all markets would be screw ed,so the public swallowed their b.s. and drank their koolaid just as the fed hoped.Idiots !
I didn't watch the whole video, but with respect to what I did watch, I heard no analysis of "velocity of money"…. which is an important issue in the inflation/deflation debate.
I recommend 1.25 speed, and thank me later.
Increasing wages will be the next headache for the Fed.
Would love to see a discussion between Jeff Snider & Steve Hanke about the bond market – and Jeff's claim that there's additional "non-investment" value in the utility of bonds as balance sheet collateral tools, and using them for repo.
^^v
good video, if you skip all parts where the host was talking. Still a thumbs up from me
The Fed. knows all about the money supply effect on inflation. They already planned for the outcome they have pre-positioned the selected bankers for. Been doing it since Napolean lost the war.
My model is reality. The current situation on the ground is rising prices in everything. Housing alone is exploding. When they have to put the brakes on a runaway situation, the real 6-10% CPI will mean 20% plus in rising prices/inflation. Interest rates rising will then put the final nail in the coffin and cause a crash and deflation of biblical proportions. Your wealth will only be protected by gold and silver, real money. The ultimate anchor “currency” is gold for the last 5,000 years.
My question would be why he could possibly even hope to predict inflation in 2025? I mean, as he says, "money dominates" — so if in 2024 if Divisia M3/M4 explodes by 3000%, well, then in 2025 you will have inflation coming from that, right? That being said not sure why anybody would predict 'deflation' or perhaps the 'delflation camp' really the 'less inflation camp'? Bottom line the Fed is just not going to allow that to happen. They'll quantitatively ease products off Target's shelves if they have to.
Bitcoin doesn't have a leader. Most Bitcoiners can't stand Elon Musk.
Bitcoin is currency! Ask the people that live in El Salvador.
2 weeks from now and this inflation talk will be taking a different direction