Is it possible to hedge your investments against different levels of inflation? This is the question we ask in today’s episode, as we run through a variety of different investment approaches and commodities. While the answer may not come as a huge surprise, it is definitely worth the walk-through and getting to grips with what the literature can tell us in each scenario. After rounding up some news and a few reviews relevant to our usual subject matter, we dive straight into this topic, tackling the performance of stocks and bonds, gold, international stocks, value stocks, and more! We also share some general thoughts and questions to ask during periods where inflation is high, before positing our view that there is no single successful hedge against inflation, but rather our usual position of an adjusted and diversified portfolio will serve you as well in this regard as in others. We finish off this episode with a few of our usual quick cards, and this week’s disturbing bad advice! So tune in to hear all about what you should know about expected and unexpected inflation and a whole lot more!
Links From Today’s Episode:
Rational Reminder on iTunes —
Rational Reminder Website — 1
Episode 98 — Episode 98: Rapid Fire Listener Questions, Wealthsimple’s Victory Lap, and the Historic State of Value Investing — Rational Reminder
‘The Golden Dilemma’ — 2
‘The Golden Constant’ — The Golden Constant by Claude B. Erb, Campbell R. Harvey :: SSRN 1
Larry Swedroe — Larry Swedroe | Buckingham Strategic Wealth 1
‘Value and Interest Rates: Are Rates to Blame for Value’s Torments?’ — Value and Interest Rates: Are Rates to Blame for Value’s Torments? by Thomas Maloney, Tobias J. Moskowitz :: SSRN…(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
Hey Everyone – sorry for the delay on releasing this one. We had some technical difficulties in this episode. There's some audio issues on Ben's side. We hope it doesn't take away from the discussion!
Pretty simple, perhaps, but also conceals some truths, where its not wrong. Prices can increase for many reasons. War, disasters, tech changes etc…. ships getting stuck in canals. However these are tempoary. Government money printing is the real inflation, the rest are just price increases. Inflation is a function of government. Left alone we would have a slow deflation (since we become better at producing stuff, and would have a fixed volume of money).
That deflation is bad is mostly a myth, a justification for keynsian central bankers to print more money for their governments.
Also, the Bank of Canada explanation is laughable. Making long range plans would be easier if there wasn't any inflation.
Thanks guys!
please put timestamps at least of when you start to talk about the main topics thanks. the intro chat is nice but its also nice to skip if one is short on time
Silver and commodities, especially agro, make best returns during inflationary periods. If we look at the data.
I listened for an hour and am none the wiser as to what the answer is :/
I completely sold the last of my holdings at Wealthsimple Invest a few months ago. I now only hold VGRO and XEQT.
There is a narrative coming from many value investors that the best hedge against inflation is not just value stocks, but more specifically – value stocks of companies which have pricing power; that is strong brands which will adjust their prices in line with inflation. I understand that in general you do not support 'stock picking' – is this a good enough reason in your eyes not to explore mentioned idea?
I've listened to all your podcast episodes from 1-150 on my iPhone and this is the first time I'm watching you guys on video. its nice to put a face to Cameron's voice. I've watched Ben's content on his other channel.
Wishing you guys another 150 successful podcast episodes guys. Thanks for everything
thank you! Another timely and great viddy!
Hey! I love the format you guys do, can you please tell me what software you use to record voice and video? I am a huge fan. Thank you!
Amazing work, thank you so much for doing this.
I just wanted to point out that It’s possible Canada and UK outperformed the US during high inflation periods because of their larger material sector composition.
Is buying real estate with a 25 years mortgage a good way to profit from inflation ? After all, inflation reduces the real cost of the property ?
Ultimate Hedge: public service / military career with cost of living adjustment in both pay and pension.
People who are US citizens should look into Series I Bonds. Unlike TIPS, they can never give negative real returns. They aren't marketable, so the face/market value never changes, and you'll always get returns equal to the rate of inflation, which is adjusted every 6 months. I see them as more like inflation-protected cash rather than a bond, since they don't give positive real returns. They can be redeemed any time after 1 year for a small interest penalty, and after 5 years for no penalty
You should do your own research though, because there are a lot of differences between I bonds, TIPS, and traditional bonds. They're bought at "treasurydirect," which is also a good place to read about them
You two are my new heroes.
Thanks for the segment on Wealthsimple. I brought that point on Reddit in almost the same way you did but got downvoted to oblivion by all the clueless people who won't accept that WS's active management decisions are completely wrecking their returns.
Could you have more of a discussion on the cards at the end? compared to two short statements, but no real discussion.
Isn't property good hedge to inflation?
Gold is historically a good hedge if you have hyper inflation. That's what the data supports. But as a hedge against moderate inflation……not so.
I'm 18, and honestly you guys may have shifted my life path. You guys have sparked an interest in finance I just can't seem to scratch and have caused me to consider changing my major. Keep up the good work, I will be watching every video.