Do equities (and real estate) give you inflation protection?

Hyperinflation In Hungary

Confronted with the possibility that the endgame of the present experiment in extreme monetary accommodation may be higher inflation and even currency disaster, many private investors and portfolio managers respond that they should be okay, since their wealth is protected through allocations to equities and real estate. In contrast to cash and fixed income securities, which are certain to get obliterated in an inflationary environment, equities and real estate are considered some form of ‘hard’ or ‘real’ asset, not just … [Read more...]

Some personal thoughts on surviving the monetary meltdown

1 kilo gold bar

Let us start by looking at the economy from 10,000 feet above: After 40 years of boozing on easy money and feasting on fantastical asset price inflations, the global monetary system is approaching catharsis, its arteries clogged and instant cardiac arrest a persistent threat. Most financial assets are expensive, and many appear to be little more than securitized promises with low probability of ever delivering payment in full. Around the globe, from Japan to the US, a policy of never-ending monetary stimulus consisting of … [Read more...]