Anurag Wakhlu is a Financial Strategist, Entrepreneur, Technologist and a blogger. He has over 15 years of experience in the Information Technology industry, and more recently in the Asset Management space. Mr Wakhlu has an MBA from Babson College, MA, and an engineering degree from the Indian... More
If you are in the camp that thinks that all this government spending and a resurgent global growth (after this recession is over) will cause an above average inflation scenario, and want an investment strategy that could help in such a scenario, then read on.
There are several ways one can hedge against inflation. One can invest in commodities, gold, oil, and the more traditional US TIPS. However, each comes with its own flavor of risk and a variety of factors that can cause the returns of the strategy to differ from just “Breakeven inflation” (term used interchangeably with “inflation expectations”).
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Seeking Breakeven Inflation
If you are in the camp that thinks that all this government spending and a resurgent global growth (after this recession is over) will cause an above average inflation scenario, and want an investment strategy that could help in such a scenario, then read on.
There are several ways one can hedge against inflation. One can invest in commodities, gold, oil, and the more traditional US TIPS. However, each comes with its own flavor of risk and a variety of factors that can cause the returns of the strategy to differ from just “Breakeven inflation” (term used interchangeably with “inflation expectations”).