**This webcast aired on Wednesday June 16th, 2021** Get access to Hedgeye's FREE Market Brief newsletter: Throughout June, Hedgeye CEO Keith McCullough is hosting a special Real Conversations series with four leading market strategists: Inflation Tsunami: Investing During A Rising Inflationary Tide. Follow this link to get access to our other webcasts: MORE INSIGHT WITH STEVE HANKE Steve Hanke is the founder and co-director of the Institute for Applied Economics, Global Health, and the Study of Business Enterprise at Johns Hopkins. Hanke served as a senior economist in the Reagan White House and as an advisor to several nations' governments. Currently, he is a senior fellow at the Cato Institute, chairman of a metallurgical supervisory board in Amsterdam and chairman emeritus of the Friedberg Mercantile Group Inc. Watch last year's "Real Conversation" between Hanke and McCullough: "COVID-19, Panicky Markets & The Economic Implications"...(read more)
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As the world grapples with the aftermath of the COVID-19 pandemic, inflation has become a hot topic of discussion among investors. Many fear that the unprecedented amount of monetary stimulus injected into the global economy will ignite hyperinflation, leading to a sharp increase in prices and a significant loss of purchasing power. Amid this uncertainty, renowned economists Steve Hanke and Charles McCullough offer insights on how investors can protect themselves against the inflation tsunami. Hanke and McCullough, who have a wealth of experience in navigating inflationary environments, recommend investing in assets that have historically proven to be inflation hedges, such as gold, real estate, and commodities. Gold has been a go-to asset for investors looking to hedge against inflation. Its value tends to rise as inflation increases since it is viewed as a safe-haven asset. McCullough believes that gold could soar to $4,000 an ounce in this inflationary environment. According to him, it is not too late for investors to add gold to their portfolios. Real estate is another asset class that can be a reliable inflation hedge. Hanke highlights the importance of investing in rental properties that can generate cash flow and provide a steady stream of income. In a high-inflation environment, rents tend to rise along with property values, providing investors with a double-edged benefit. Commodities are also an attractive investment option in times of inflation. McCullough recommends investing in commodities such as oil, natural gas, and agricultural products, which tend to benefit from increased demand and higher prices during inflationary periods. However, Hanke warns against relying solely on these inflation hedges. He recommends diversifying your portfolio across different asset classes, such as stocks, bonds, and cash, to mitigate risks and maximize returns. McCullough also warns that investors should be aware of the risks of investing in stocks and bonds during an inflationary period. Inflation reduces the value of future cash flows, making it difficult for companies to finance their debt. In such an environment, stocks and bonds become riskier investments, and investors need to be cautious. In conclusion, the threat of inflation is real, and investors need to be proactive in protecting their portfolios against the inflation tsunami. Hanke and McCullough's advice to invest in assets such as gold, real estate, and commodities can provide a cushion against rising inflation. However, diversification is key, and investors need to be careful not to rely solely on these assets. The key to successful inflation hedging is to be informed, stay vigilant, and adapt to changing market conditions. https://inflationprotection.org/investment-strategy-amidst-inflation-surge-the-inflation-tsunami-by-hanke-mccullough/?feed_id=90756&_unique_id=6445c5510a5d4 #Inflation #Retirement #GoldIRA #Wealth #Investing #Bloomberg #Day #Finance #hedgeye #inflation #keithmccullough #macroeconomics #Markets #Options #realconversation #stevehanke #Stocks #Trading #WallStreet #InvestDuringInflation #Bloomberg #Day #Finance #hedgeye #inflation #keithmccullough #macroeconomics #Markets #Options #realconversation #stevehanke #Stocks #Trading #WallStreet
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