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It's not sexy, but if you have the space for it, picking up a long term supply of necessities isn't a bad place to put your money. Various sales and firesales h

It's not sexy, but if you have the space for it, picking up a long term supply of necessities isn't a bad place to put your money. Various sales and firesales happen, picking up canned goods, toiletries, and so on is a decent hedge against inflation and the bulk savings from buying a year's worth is probably going to exceed anything you'd get on the market. Of course, this is more for people with low tens of thousands of cash around, not quite as applicable to people with hundreds of thousands and higher in cash trying to figure out what to do with it. But if I had a house, I'd go pick up a year's supply of the basics whenever I saw them come moderately to deeply on sale. It's going to save more money than you'd make on any bond in the near future.

encoderer 17y ago
For this to be true, you'd have to imagine the investment as at least 1 year, wouldn't you agree? So probably several years? And you'd have to purchase goods that would last that long. The reason I say that, is that you can still find 3% FDIC insured savings and money market accounts (look at your local Credit Unions). For me to get a better return on canned pears and chicken stock, we'd need real consumer price inflation > 3%. If you take a look at the consumer price index and remove energy costs, it's been quite some time since we've experienced 3% annual inflation. (Removing energy costs is the key here). Now.. if you hold it for 3 years, it would probably be a no brainer. As long as you don't mind actually eating what you bought over those years -- eg no 40 cases of Peanut Butter!
- pupeno 17y ago
  I think the issue is not only inflation, but the price fluctuations that happen all the time, that are much bigger. If one day, at the supermarket, you see toilet paper in a two for one offer, and you buy a whole year of supply, you'll be saving 50% over the year. I think the goal is not playing against inflation but to play against the stock issues of supermarkets (if you have a way to have the stock locally).
WingForward 17y ago
If you had a house, and a mortgage, you could put money into the principal. Mine is 5.675%. What investment is going to guarantee me that return?

encoderer 17y ago

For this to be true, you'd have to imagine the investment as at least 1 year, wouldn't you agree? So probably several years? And you'd have to purchase goods that would last that long. The reason I say that, is that you can still find 3% FDIC insured savings and money market accounts (look at your local Credit Unions). For me to get a better return on canned pears and chicken stock, we'd need real consumer price inflation > 3%. If you take a look at the consumer price index and remove energy costs, it's been quite some time since we've experienced 3% annual inflation. (Removing energy costs is the key here). Now.. if you hold it for 3 years, it would probably be a no brainer. As long as you don't mind actually eating what you bought over those years -- eg no 40 cases of Peanut Butter!

pupeno 17y ago
I think the issue is not only inflation, but the price fluctuations that happen all the time, that are much bigger. If one day, at the supermarket, you see toilet paper in a two for one offer, and you buy a whole year of supply, you'll be saving 50% over the year. I think the goal is not playing against inflation but to play against the stock issues of supermarkets (if you have a way to have the stock locally).

WingForward 17y ago

If you had a house, and a mortgage, you could put money into the principal. Mine is 5.675%. What investment is going to guarantee me that return?