Stocks for High Inflationary Periods

[javyn]

Suggestions?

Here is what I'm looking at at the moment...

PLD

http://finance.yahoo.com/q?s=PLD

 

[cross22]

Do you want to hedge against inflation or profit from it? If you want to hedge look into TIPS.

 

[javyn]

Profit

 

[chas]

TIP

 

[whallyden]

Commodities. Energy (oil and gas), basic materials (metals, fertilizer, etc.) and select food stocks come to mind.

I think your REIT idea is only sound if you believe that said inflation is the result of economic growth. In addition, are you comfortable with how the REIT will behave in a rising interest rate environment?

 

[ppllzz]

i don't really see why inflation would drive up demand for commodities. sure commodity prices will go up, but prices of intermediate and final goods also go up, and so do wages... i imagine inflation would increase all stock prices by about the same amount.

edit: unless the company in question had large cash holdings

 

[Don Carlos]

Originally Posted by ppllzz

i don't really see why inflation would drive up demand for commodities. sure commodity prices will go up, but prices of intermediate and final goods also go up, and so do wages... i imagine inflation would increase all stock prices by about the same amount.

edit: unless the company in question had large cash holdings

A lot of the country's biggest companies are absurdly cash-heavy right now.

 

[itsstillmatt]

Pricing power. Not much more needs to be said.

 

[Valproate]

TIPS won't work. The gov understates true inflation. Go with gold miners, commodities. If you want to gamble, try physical silver (PSLV)

 

[Don Carlos]

Be very careful with commodity ETFs. They are not direct proxies for the commodity itself. Only a few of them are actually backed by real bars of gold, or silver, or whatever, sitting in a vault somewhere. And all of them are forced to buy and sell their contracts and obligations at set points in time, meaning that they can occasionally miss the boat on large price fluctuations in either direction.

 

[Gus]

Originally Posted by iammatt

Pricing power. Not much more needs to be said.

+1,000,000

 

[SkinnyGoomba]

It's my understanding that Assets are themselves a hedge against inflation, but when it comes to particular ones:

http://www.bloomberg.com/news/2011-0...anagement.html

 

[Valproate]

Originally Posted by Don Carlos

Be very careful with commodity ETFs. They are not direct proxies for the commodity itself. Only a few of them are actually backed by real bars of gold, or silver, or whatever, sitting in a vault somewhere. And all of them are forced to buy and sell their contracts and obligations at set points in time, meaning that they can occasionally miss the boat on large price fluctuations in either direction.

Agreed. Avoid ETN's, which are actually a liability of whatever company issued them. So if you bought ETN's issued by Lehman Brothers, you would be wiped out. Also, there is always the question of whether some ETF's (GLD, SLV) are actually backed by the metal or not.

So I should specify commodity miners (FCX, SCCO, TCK) and their ETF's (GDX for gold miners)

 

[KlezmerBlues]

Livestock.

 

[javyn]

Interesting, thanks for all the replies