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Have a diversified portfolio. Rational Reminder went over the data in "The Ultimate Inflation Hedge": > Is it possible to hedge your investments against differ

Have a diversified portfolio. Rational Reminder went over the data in "The Ultimate Inflation Hedge": > Is it possible to hedge your investments against different levels of inflation? This is the question we ask in today's episode, as we run through a variety of different investment approaches and commodities. While the answer may not come as a huge surprise, it is definitely worth the walk-through and getting to grips with what the literature can tell us in each scenario. After rounding up some news and a few reviews relevant to our usual subject matter, we dive straight into this topic, tackling the performance of stocks and bonds, gold, international stocks, value stocks, and more! We also share some general thoughts and questions to ask during periods where inflation is high, before positing our view that there is no single successful hedge against inflation, but rather our usual position of an adjusted and diversified portfolio will serve you as well in this regard as in others. We finish off this episode with a few of our usual quick cards, and this week's disturbing bad advice! So tune in to hear all about what you should know about expected and unexpected inflation and a whole lot more! * https://rationalreminder.ca/podcast/150 https://rationalreminder.ca/podcast/150 Stocks generally bounce back, them going down isn't a big deal given the idea of 'buying low'.

busterarm 5y ago
Also invest where you know/have an edge. I've made judicious purchases in sealed Magic: The Gathering product. In just under 3 years, my initial 6-digit investment is up over 200%. Some purchases are wildly up and nothing so far has been a losing bet. Other areas in collectibles I am also doing really well, like statues, classic cars, etc. Obviously a limiting factor is storage space. I've lucked out due to some black swan type events but I can't see anywhere else where my investments are performing nearly as well.
- MisterMower 5y ago
  I think this is the manifestation of the current inflationary environment. Anything fungible and easily transferable is gaining value because no one wants to hold dollars right now.
coderaptor 5y ago
When everyone’s settled on maximizing the diversity of their investments, I wonder if the strategy loses viability as an effective hedge.
- throw0101a 5y ago
  There will never be a point of time when "everyone" will do it, viz /r/wallstreetbets. It's been known that trying to pick individual stocks is generally a sucker's bet since (at least) 1973, but people still try to do it: * https://en.wikipedia.org/wiki/A_Random_Walk_Down_Wall_Street https://en.wikipedia.org/wiki/A_Random_Walk_Down_Wall_Street
  - medvezhenok 5y ago
    Same with gambling. You will never get really rich (100M+) without stock picking but you’re going to be better off in the average case by sticking to the index. Similar to working for a startup vs working for a large corporation - working at a startup is like stock picking:)

busterarm 5y ago

Also invest where you know/have an edge. I've made judicious purchases in sealed Magic: The Gathering product. In just under 3 years, my initial 6-digit investment is up over 200%. Some purchases are wildly up and nothing so far has been a losing bet. Other areas in collectibles I am also doing really well, like statues, classic cars, etc. Obviously a limiting factor is storage space. I've lucked out due to some black swan type events but I can't see anywhere else where my investments are performing nearly as well.

MisterMower 5y ago
I think this is the manifestation of the current inflationary environment. Anything fungible and easily transferable is gaining value because no one wants to hold dollars right now.

coderaptor 5y ago

When everyone’s settled on maximizing the diversity of their investments, I wonder if the strategy loses viability as an effective hedge.

throw0101a 5y ago
There will never be a point of time when "everyone" will do it, viz /r/wallstreetbets. It's been known that trying to pick individual stocks is generally a sucker's bet since (at least) 1973, but people still try to do it: * https://en.wikipedia.org/wiki/A_Random_Walk_Down_Wall_Street https://en.wikipedia.org/wiki/A_Random_Walk_Down_Wall_Street
- medvezhenok 5y ago
  Same with gambling. You will never get really rich (100M+) without stock picking but you’re going to be better off in the average case by sticking to the index. Similar to working for a startup vs working for a large corporation - working at a startup is like stock picking:)