On Apr 21, 2:27*pm, Mike <mklosterme...[at]gmail.com> wrote:
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TIPS, gold/precious metals, materials, real estate.

On Apr 21, 5:27*pm, Mike <mklosterme...[at]gmail.com> wrote:
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Bonds are the tradtional 'loser' during inflation, as well as cash,
but at this moment in markets, cash has been a big winner. The
question, as you accurately see it, is what to convert the cash into
if inflation is around the corner.

One obvious home for your inflation-proof money is a home
(literally :-) Housing prices are well off their highs, some think
they may have bottomed, and a home is a very big-ticket, inflation-
sensitive item with immediate personal utility.

If you have all the real estate you want, my next bet is stock in a
company with products or services that are either best-in-world or not
easily imported. By purchasing part of "the establishment" you have an
inflation hedge. By purchasing increasing sales and earnings, as well
as possibly increasing dividends, you have a "kicker." You have an
income stream, and the AICPA definition of liquid assets.

Gold is usually highlighted (as if the shiny-yellow needed
highlighting :-) and if you can justify the holding and transaction
costs, I suppose gold or silver are good for retention of value, but
be very mindful of your market timing.

I think the idea behind inflation hedging is to hold "real
value" (that which money buys), as opposed to "buying money." Make
sure you keep cash for expenses :-)

I am interested in knowing the preferred strategies from the group if
one were to assume an increase in inflation over the next several
years. Thanks for your input.