inflation play

Quote from Martinghoul:

Take out as much fixed-rate debt as you possibly can and buy stuff with it.

You will be happy, while the people who you will be paying the coupons to won't be.
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Unless we get real deflation in a worsening economy, in which case one would royally screwed up the ass.
 
Ho... By the way !
I forgot one thing.
If you don't own your house just buy one.
If you already own a house but still has some borrowing capacity buy some real estate and rent it (with all the insurances and all of course).
Finance it 100% with a credit (fix rate).
Here in France we have some nice rate again (3,8% for 15 years).
Real Estate with a credit at such low rate is a nice inflation play !
Cheers
M.
 
great stuff chaps. am curious about using eurodollar futures.... nice liquid instrument to trade but which month/ months to trade? anyone out there trade them? keep it coming!
 
Quote from ropey b:

great stuff chaps. am curious about using eurodollar futures.... nice liquid instrument to trade but which month/ months to trade? anyone out there trade them? keep it coming!
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You really shouldn't...

Do you have a view on how the Fed is going to react to inflation? Do you have a view on the timing of Fed hikes? What about LIBOR?

Also much depends on the time horizon of your view, as Eurodollars may not go out far enough.
 
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