I like how you accept that investments are essentially a hedge
against inflation rather than a means in themselves for building wealth.
Not exact matches
There are major constituencies
against inflation that would
rather force a government into default than tolerate
inflation that disproportionately hurts them.
There is pressure on many Asian currencies to appreciate
against the dollar
rather than buy more dollar denominated debt, which expands their monetary bases, and helps fuel
inflation.
If
inflation is kicking up, if interest rates domestically and worldwide are rising, or if the Fed is signaling tightening moves, the major tide is running
against your position, so your bias should be toward selling
rather than holding.
As the GAD report acknowledges, a mixed portfolio provides claimants with no protection
against the risk of
inflation, and so, unlike periodical payments, leaves that risk with them
rather than with the insurers.