Comments on: Investing in an Inflationary World http://www.canadiancapitalist.com/investing-in-an-inflationary-world/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Why Gold Prices go up? | MoneySense http://www.canadiancapitalist.com/investing-in-an-inflationary-world/#comment-302848 Why Gold Prices go up? | MoneySense Tue, 09 Nov 2010 14:46:29 +0000 http://www.canadiancapitalist.com/?p=1220#comment-302848 [...] Investing in an Inflationary World [...] [...] Investing in an Inflationary World [...]

]]> By: Thicken My Wallet » Blog Archive » Implications of the bail-out on you and me http://www.canadiancapitalist.com/investing-in-an-inflationary-world/#comment-158085 Thicken My Wallet » Blog Archive » Implications of the bail-out on you and me Mon, 29 Sep 2008 09:02:11 +0000 http://www.canadiancapitalist.com/?p=1220#comment-158085 [...] Here comes inflation. Inflation is upward movement of the price of goods and service. In other words, a buck doesn’t get you what it use to. Inflation is caused by a wide-variety of factors but one cause is the increased circulation of money into the monetary system. Guess how the American government is going to fund the bail-out? Yep, putting more money into circulation. Canadian Capitalist has some tips (no pun intended) on investing in an inflationary world. [...] [...] Here comes inflation. Inflation is upward movement of the price of goods and service. In other words, a buck doesn’t get you what it use to. Inflation is caused by a wide-variety of factors but one cause is the increased circulation of money into the monetary system. Guess how the American government is going to fund the bail-out? Yep, putting more money into circulation. Canadian Capitalist has some tips (no pun intended) on investing in an inflationary world. [...]

]]> By: Weekly Roundup: Third Baby and Last Retaining Wall Edition at Clever Dude Personal Finance & Money http://www.canadiancapitalist.com/investing-in-an-inflationary-world/#comment-155488 Weekly Roundup: Third Baby and Last Retaining Wall Edition at Clever Dude Personal Finance & Money Sun, 14 Sep 2008 19:51:19 +0000 http://www.canadiancapitalist.com/?p=1220#comment-155488 [...] - Canadian Capitalist advises on investing in an inflationary world [...] [...] – Canadian Capitalist advises on investing in an inflationary world [...]

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/investing-in-an-inflationary-world/#comment-152563 Canadian Capitalist Wed, 03 Sep 2008 00:37:52 +0000 http://www.canadiancapitalist.com/?p=1220#comment-152563 Jon, Fred: US bond yields suggest modest inflation expectations as well. The yield on 30-year treasuries is 4.37% and 30 year TIPS is 2.10%, suggesting inflation expectations of around 2.5%. Jon, Fred: US bond yields suggest modest inflation expectations as well. The yield on 30-year treasuries is 4.37% and 30 year TIPS is 2.10%, suggesting inflation expectations of around 2.5%.

]]> By: Fred http://www.canadiancapitalist.com/investing-in-an-inflationary-world/#comment-152548 Fred Wed, 03 Sep 2008 00:14:18 +0000 http://www.canadiancapitalist.com/?p=1220#comment-152548 Jon202: Ken Fisher says much the same. In "The Only Three Questions That Count" on page 232, Ken suggests that the reader refer to global long-term bond rates to get a sense of global inflation. Jon202:

Ken Fisher says much the same. In “The Only Three Questions That Count” on page 232, Ken suggests that the reader refer to global long-term bond rates to get a sense of global inflation.

]]> By: Jon202 http://www.canadiancapitalist.com/investing-in-an-inflationary-world/#comment-152462 Jon202 Tue, 02 Sep 2008 16:59:50 +0000 http://www.canadiancapitalist.com/?p=1220#comment-152462 Kevin O'Leary from BNN always says to look at the U.S. long bond (30 yr. tbill) for inflation rates. http://www.bloomberg.com/markets/rates/ I'm not saying he's right, just adding some kerosene to the fire. Kevin O’Leary from BNN always says to look at the U.S. long bond (30 yr. tbill) for inflation rates.

http://www.bloomberg.com/markets/rates/

I’m not saying he’s right, just adding some kerosene to the fire.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/investing-in-an-inflationary-world/#comment-152442 Canadian Capitalist Tue, 02 Sep 2008 15:13:42 +0000 http://www.canadiancapitalist.com/?p=1220#comment-152442 NN: The real returns on cash seem to be similar to bonds i.e. negative (but not as much as bonds) in periods of rising inflation and positive (again not as much as bonds) when it is falling. I agree with you that asset allocation policy should not depend on short-term macroeconomic expectations. After all, not too long back investors were worried about deflation, not run-away inflation. And bond markets seem to be expecting inflation to be muted. NN: The real returns on cash seem to be similar to bonds i.e. negative (but not as much as bonds) in periods of rising inflation and positive (again not as much as bonds) when it is falling. I agree with you that asset allocation policy should not depend on short-term macroeconomic expectations. After all, not too long back investors were worried about deflation, not run-away inflation. And bond markets seem to be expecting inflation to be muted.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/investing-in-an-inflationary-world/#comment-152439 Canadian Capitalist Tue, 02 Sep 2008 15:08:50 +0000 http://www.canadiancapitalist.com/?p=1220#comment-152439 Doug: There is a new Claymore Infrastructure ETF (CIF). I'm working on a post on this topic and would be happy to send you reading materials. CI: Some people mention commodities as a separate asset class but I have my doubts whether they are suitable long-term holdings. Phil: I agree with you that gold doesn't have a perfect correlation with inflation. I avoid "investing" in physical gold and have no allocation to gold equities either. Doug: There is a new Claymore Infrastructure ETF (CIF). I’m working on a post on this topic and would be happy to send you reading materials.

CI: Some people mention commodities as a separate asset class but I have my doubts whether they are suitable long-term holdings.

Phil: I agree with you that gold doesn’t have a perfect correlation with inflation. I avoid “investing” in physical gold and have no allocation to gold equities either.

]]> By: NN http://www.canadiancapitalist.com/investing-in-an-inflationary-world/#comment-152424 NN Tue, 02 Sep 2008 14:13:39 +0000 http://www.canadiancapitalist.com/?p=1220#comment-152424 Phil S - I believe there are a couple of studies that show how gold is correlated with inflation - e.g. for the past 3000 (!!!)years or so 1 ounce of gold would have bought one suite of superior quality (exclude Armani or any of the other overpriced brands). You are right on two counts though: it is more volatile (usually driven by the FEAR of increasing inflation), and a long term investor will not beat inflation, i.e. the real return is low, or nothing. People who make money in the gold market essentially rely on market timing, and the 'average' investor should probably not attempt that. CC - no mention of Cash? I thought cash was the ultimate inflation hedge :). I wonder if it is wise (for the 'average' investor) to consider macro economic trends such as inflation in making short or medium term asset allocation decisions? As mentioned before, I am a young investor with no qualms about absorbing short term volatility, as long as the long term returns beat inflation - Equities and REIT/Property before anything else for me. Phil S – I believe there are a couple of studies that show how gold is correlated with inflation – e.g. for the past 3000 (!!!)years or so 1 ounce of gold would have bought one suite of superior quality (exclude Armani or any of the other overpriced brands). You are right on two counts though: it is more volatile (usually driven by the FEAR of increasing inflation), and a long term investor will not beat inflation, i.e. the real return is low, or nothing. People who make money in the gold market essentially rely on market timing, and the ‘average’ investor should probably not attempt that.

CC – no mention of Cash? I thought cash was the ultimate inflation hedge :) .

I wonder if it is wise (for the ‘average’ investor) to consider macro economic trends such as inflation in making short or medium term asset allocation decisions?

As mentioned before, I am a young investor with no qualms about absorbing short term volatility, as long as the long term returns beat inflation – Equities and REIT/Property before anything else for me.

]]> By: Doug http://www.canadiancapitalist.com/investing-in-an-inflationary-world/#comment-152411 Doug Tue, 02 Sep 2008 11:39:19 +0000 http://www.canadiancapitalist.com/?p=1220#comment-152411 "Infrastructure" is another investment that is more resistant to inflation. I suggest that you go to the websites of the CPP and the Ontario Teachers Pension Plan. Both are invested in infrastructure. Is their an ETF for this? “Infrastructure” is another investment that is more resistant to inflation. I suggest that you go to the websites of the CPP and the Ontario Teachers Pension Plan. Both are invested in infrastructure. Is their an ETF for this?

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