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What makes the best inflation hedge?

by , 25 January 2022
What makes the best inflation hedge?
Everything you read right now is about inflation.

It's a major global concern. And it should be your concern too.

Because it can seriously erode your wealth.

But there is a smart way to inflation-proof your portfolio today...

 

This relationship automatically makes commodities an effective
hedge against inflation


That’s because there is a positive relationship between the price of commodities and inflation.

Consider that the Consumer Price Index (CPI) measures monthly changes in prices for a range of consumer products such as transportation, medical care and food and beverages.
And it’s the changes in the CPI that record the rate of inflation...

So, because commodities are a key driver of the price of many of these consumer goods  - Take for example, transportation, which is heavily dependent on oil prices or food & beverages which are dependent on the prices of agricultural commodities - Then it’s logical that when inflation rises, commodities rise with it.

Furthermore, commodities provide sound protection against inflation shocks.
Inflation shocks can come in the form of rapid increases in food or energy prices.

And when this happens, commodities hedge inflation well. The higher the level of inflation, the more effective they become.

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How we bagged a 205.76% gain from the Nasdaq
in only 10 days


Meet Trader X. Trader X knows a few of the top stock indices inside out.

A recent piece of news in the financial markets signalled the Nasdaq was likely to drop in price, so he sent an alert telling his readers an American index is about to go down.

And as a result of a 2.46% drop in price, he was able to capture a 205.76% gain on this move.
Find out how that's even possible here.

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So how do you inflation proof your portfolio?


Right now, a number of JSE listed commodity companies are generating huge cash flows, with very little to no debt. And compared to other industries and the overall market, they’re trading at bargain levels.

So, I expect good returns from commodity stocks in 2022.  In fact, the gains have already started to come, with the JSE Resource 10 Index already up over 6% this year.

There will be more to come so make sure your portfolio holds some commodity plays to counter high inflation. Two of my top three stock plays for 2022 are exactly these kinds of stocks, you can find out how to
claim a risk-free copy here.
 

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Last chance to experience our open house event

 


Over the last few weeks, I sent you formal notice about the Private Wealth Alliance.

I hope you had the chance to see the whole story -- but in case you missed it, here’s the scoop:

Once a year, we allow a small number of interested folks to have complete access to our 3 most popular investment research services, the FSPInvest Private wealth Alliance.

The Open House ‘event’ grants you an “in” to our most elite and expensive research.

For those very reasons, it’s also a limited opportunity.

There’s just 6 days to go before we shut it down. So if this level of access interests you,
 make sure you get the entire story here.

This invitation will go offline on 31 January, so you ought to act now..

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