proseadvocate

How to Construct a Deflation Proof Portfolio

Historically, long term government bonds have been the best deflationary investment. However, the last such period was an entirely different environmnet where the Dollar was backed by Gold reserves. Only after the Govt made owning gold illegal, and ended the backing of its own paper, and then an inflationary world war, were we able to pull out. Today, we have no hard assets backing the Buck nor any real resources. Therefore, I too am more concerned about inflation [once the stock bubble bust has subsided] and people begin to bid up the prices of staples again, like food and petrol.