Does anyone have any inflation beating strategies?


#1

We are living in an era of unheard of low inflation and volatility…

How could I protect my savings if inflation began to bite?


#2

I think the best thing to do is invest in assets intrinsically tied to inflation…

Gold
Gold beats inflation something like 58% of the time. If you want to invest there are a host of options for you. You can buy physical bullion, invest in gold ETFs or invest in more volatile gold mining companies.

Today gold ETFs are receiving incredibly large inflows…

Commodities
Investing in commodities beats inflation almost 66% according to investopedia.

It’s not always easy to invest in commodities for the long-run (short run - use derivatives). You could invest in a basket of companies invested in commodities. e.g. If you wanted to invest in beef, invest in Tyson Foods Inc.

Stocks
The jury is out whether stocks beat inflation. Stocks are invariably better than cash, however I am not sure how much better.

If you wanted to be clever you could invest in hard assets with high debt equity ratios. Inflation would peel away debt - making companies far more valuable…


#3

If you are interested in hyper-inflation, then this is certainly worth some time. I wrote it a few days ago: