3 ms·
> Basically anything that is a part of the cpi basket is an inflation hedge. (Insert used car meme.) much of the CPI are depreciatory or non-durable goods. i c
by wallacoloo 5y ago
> Basically anything that is a part of the cpi basket is an inflation hedge. (Insert used car meme.)
much of the CPI are depreciatory or non-durable goods. i can’t hedge against multi-year inflation by purchasing meat and dairy. if i buy a car as you suggest, it’s not likely to be worth as much 5 years from now than today.
or do you mean not literally buying the CPI basket, but buying commodity futures, stock in producer companies, etc?
- baq 5y agoyes, exactly, except not necessarily futures; commodity etfs are just fine, so are energy companies, materials, etc. of course you have to know when the regime changes, see e.g. energy prices in the past 3 months.