Robert Martorana's  Instablog

A rising tide lifts all  boats, and the current liquidity boom is boosting inflation-hedge vehicles of every stripe. The nine ETFs below are common forms of protection against inflation, and/or a crash in the U.S. dollar. Every ETF is above its 200-day moving average, and all but the TIP are above the 50-day MAVG as well. 

Approaching 52-Week Highs
Gold and precious metals are within striking distance of their 52-week highs, as are inflation protected funds of either U.S. or international bonds. Commodities are all a long way from their highs of last summer, and the short-bond index is well below its highs last Fall. 

Protection At a Cost
A basket of the securities below provide a good hedge against a devaluation in the U.S. dollar caused by rising inflation. This is a long-term bet, so I wouldn't be put off by the recent strength in these ETFs.


 

Symbol	Name	Price 8/12/09	% Change	% from 200-day Moving Avg	% from 50-day MAVG	% from 52-week  Low	% from 52-week High
GLD	SPDR GOLD SHARES	92.95	0.17%	1.87%	0.87%	40.83%	-6.10%
DBP	PWRSHS DB PRECIOUS METALS	32.7399	0.43%	2.60%	1.98%	36.53%	-7.72%
TIP	ISHARES TREASURY INFLATION PROTECTED SECURITIES	100.32	-0.39%	0.03%	-0.27%	19.23%	-6.25%
WIP	SPDR DB INTL GOVT INFLATION PROTECTED BONDS	54.00	0.80%	10.59%	2.14%	27.54%	-8.52%
TBT	PROSHS INVERSE 20-YEAR U.S. TREASURY INDEX	52.20	2.35%	5.58%	1.22%	47.00%	-24.18%
USO	U.S. OIL FUND ETF	37.35	1.33%	17.01%	4.44%	64.25%	-62.10%
DBC	DB COMMODITY INDEX	23.05	0.52%	8.87%	3.23%	28.48%	-42.53%
IYM	ISHARE DJ BASIC MATERIALS	51.11	1.15%	26.31%	11.46%	81.43%	-33.19%
UDN	PWRSHS DB US DOLLAR BEARISH INDEX FUND	27.22	0.44%	5.08%	0.73%	12.99%	-7.32%
SPY	S&P DEP RECEIPTS	100.80	1.07%	15.54%	6.39%	50.22%	-22.88%
QQQQ	PowerShares Exchange-Traded Fund	39.87	1.55%	19.22%	6.02%	59.16%	-17.91%
DIA	DIAMONDS TRUST SER 1	93.768	1.28%	14.63%	6.83%	44.75%	-20.54%

Disclosure: Long GLD, TIP, SPY