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Inflation Hedge Question - is there a way to "go long" the CPI?
- Thread starter bettles
- Start date
http://www.indexuniverse.com/sectio...s-to-launch-15-more-hedge-fund-like-etfs.html
Assuming the Securities and Exchange Commission finds no special quirks to halt a launch, the new ETFs will be the:
* IQ CPI Inflation Tracker ETF
[...]
Assuming the Securities and Exchange Commission finds no special quirks to halt a launch, the new ETFs will be the:
* IQ CPI Inflation Tracker ETF
[...]
Quote from bwolinsky:
Yeah, it's not like we should trust bloomberg or the bls. Let's trust someone's subjective opinion with no insitutional capacity to even remotely calculate core CPI correctly. Great, shows how informed anybody who reads that site is.
Keep on living in denial and watch your purchasing power get crushed - it's fine with me. The way BLS calculates CPI is a joke.
I completely agree with sprst on shadowstats and govt numbers.
My proposal:
60% TIPS
10% Gold GLD
10% Silver SLV
10% Oil USL
10% Agriculture DBA
By nature, really hedging against (High-/Hyper-)Inflation is next to impossible.
It is bad for stocks and other factors, like social unrest, have to be considered.
My proposal:
60% TIPS
10% Gold GLD
10% Silver SLV
10% Oil USL
10% Agriculture DBA
By nature, really hedging against (High-/Hyper-)Inflation is next to impossible.
It is bad for stocks and other factors, like social unrest, have to be considered.
The best hedge against high or hyperinflation I can think of is a basket of 3-4 trendfollowing CTA funds with 10+ year trackrecords. They will benefit from high asset price volatility and give you leveraged exposure to currency/commodity/interest rate swings.
If however the entire inflation scare is a headfake then these funds should preserve your nominal capital better than long only commodity/metal/TIP bond investments (see 2008 for a beautiful example).
If however the entire inflation scare is a headfake then these funds should preserve your nominal capital better than long only commodity/metal/TIP bond investments (see 2008 for a beautiful example).
My big problem with the CPI is the OER component, which completely ignores the housing equity that can be monetized.
Buy equities, buy commodities, buy TIPS... Have a portfolio of inflation-linked assets. That's my 2c
Buy equities, buy commodities, buy TIPS... Have a portfolio of inflation-linked assets. That's my 2c
Quote from Random.Capital:
This is completely illogical.
And that's fine, differences make a market.
after it happens it'll become completely logical
if you don't know how it is in third world countries, just wait a few years and you'll see for yourself
http://www.federalreserve.gov/releases/h6/current/h6.htm
check out the change in M2 YoY, maybe you can guess M3