How much does that protection asset protect you in your currency?
klementoninvesting.substack.com
We live in a time of very high inflation in industrialised markets and the fear of runaway inflation and stagflation is rising. So, investors are asking how to protect their portfolios against high inflation or the possibility of a decline in economic growth. There are so many assets that are proposed as solutions to this challenge, ranging from inflation-linked bonds to property to infrastructure to commodities and so forth. And all of these have their specific advantages and disadvantages. But one thing that irks me is that these arguments are typically supported by an analysis of correlations between stocks and the protection asset in US Dollars and then simply translated into other regions and currencies.
How much does that protection asset protect you in your currency?
How much does that protection asset protect…
How much does that protection asset protect you in your currency?
We live in a time of very high inflation in industrialised markets and the fear of runaway inflation and stagflation is rising. So, investors are asking how to protect their portfolios against high inflation or the possibility of a decline in economic growth. There are so many assets that are proposed as solutions to this challenge, ranging from inflation-linked bonds to property to infrastructure to commodities and so forth. And all of these have their specific advantages and disadvantages. But one thing that irks me is that these arguments are typically supported by an analysis of correlations between stocks and the protection asset in US Dollars and then simply translated into other regions and currencies.