Before there's general
inflation of hard assets and wages there could well be an acceleration in financial asset inflation:
Not exact matches
I have been, and still am, a gold and
hard assets investor to, number one, hedge against global monetary
inflation and fiat currency devaluation and, number two, leverage rising demand for the metal in an environment
of low market confidence.
If
inflation really takes off,
hard assets will offer some shelter though housing will lag until the
inflation of real estate exceeds the deterioration
of the debt.
Inflation is very hard to plan for or estimate and even then stocks are probably one of the better asset classes to be in when it comes to i
Inflation is very
hard to plan for or estimate and even then stocks are probably one
of the better
asset classes to be in when it comes to
inflationinflation.
When
inflation rises, the prices
of commodities and
hard assets rises too.
Over the coming decade I think we stand a good chance
of seeing significant
inflation, during which,
hard assets will be rewarded.
Though interest rates were rising, they were not quite keeping up with
inflation so the real (
inflation adjusted) cost
of money was low and investors rushed to buy houses and
hard assets.
RINC aims to provide investors access to a portfolio
of listed companies that own «
hard» physical
assets, such as property, utilities and infrastructure (eg A-REITs, airports, toll roads and gas grids), that deliver strong dividend income from reliable revenue streams that can grow ahead
of inflation.
So, keep some
hard assets like gold (maybe 10 - 20 %
of your
assets) to safeguard against devaluation
of paper currencies and
inflation.
While rising interest rates can reduce the value
of future cash flows,
inflation can in turn increase the value
of physical property due to the fact that real estate is a
hard asset.
While rising interest rates can reduce the value
of future cash - flows,
inflation can in turn increase the value
of physical property due to the fact that real estate is a
hard asset.