PIMCO Recommends Hard Commodities to Weather Inflation

Joining the likes of Jim Rogers and George Soros, PIMCO has now thrown its hat into the hard asset ring. As the economic outlook for the U.S. has continually grown more and more bleak, we have seen a number of investors and experts hop on the commodities train as the best way to protect yourself from coming inflation. In PIMCO’s most recent economic outlook, the firm commented on the current state of the markets, the impact of QE3, and trends they see developing in the coming years, one of which was inflation [for more economic news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Agriculture, Asset Allocation, Commodity ETFs, Commodity Futures, Commodity Producers, Energy, Gold, Inflation, Palladium, Platinum, Precious Metals, Silver | Tagged , , , , , , | 15 Comments

Three Alternative Sources for the Current Inflation Rate

Inflation can be a nasty surprise for investors who are not amply prepared. Its effects can reduce your real return on an annual basis and make it much more difficult to keep up with your standard of living. With the newly-announced open-ended quantitative easing program that involves a fair amount of money printing, many investors are worried that it is only a matter of time before inflation kicks up and wreaks havoc on their investments. Some are predicting hyperinflation, while others like Bill Gross have stated that inflation will be significant enough to turn all real returns to 0% for the foreseeable future [for more inflation news and analysis subscribe to our free newsletter].

Posted in Academic Research, Hard Assets, Inflation | Tagged , , , , | 4 Comments

Stocks to Buy For Hyperinflation

With the Federal Reserve firing up the presses for a third round of quantitative easing, it’s only a matter of time before more talk of imminent hyperinflation pops up. While calm discussions on the prospects of hyperinflation are rare (and there’s often a tinge of hysteria or paranoia around the topic), the reality is that the U.S. does have some disturbing trends working against it in terms of demographics, debt/deficits, and a policy of easy money that debases the fiat currency [for more inflation news and analysis subscribe to our free newsletter].

Posted in Agriculture, Brent Oil, Energy, Gold, Inflation, Precious Metals, Silver, WTI | Tagged , , , , , , , , | 4 Comments

Schiff Talks Gold, Recession, China at Commodities Conference

Last week’s Inside Commodities conference, presented by Index Universe, had a slew of well-known speakers and industry experts. Of the big names on the list, Peter Schiff was one of the most anticipated panelists of the day, as his thoughts on precious metals have long been followed by investors. As usual, Schiff did not disappoint as he commented on not only gold, but the surrounding economy and where he thinks the U.S. is headed in the future [for more gold news and analysis subscribe to our free newsletter]. 

Posted in Academic Research, Actionable Ideas, Asset Allocation, Gold, Hard Assets, Inflation, Precious Metals | Tagged , , , , , | 3 Comments

Why Bill Gross Thinks The Fed is Ruining The Economy

It seems like everyone has an opinion on quantitative easing these days, as the actions of the Fed and Ben Bernanke have riled up investors all around the world. Last Friday, some were waiting for Bernanke to announce QE 3 at his Jackson Hole speech, though he merely hinted that the Fed will step in if the economy worsens. Given all of the money printing and the fact that the U.S. economy is still sluggish at best, many experts are weighing in on the various asset-purchasing programs and whether or not they agree with the actions of the Fed [for more economic news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Inflation, News and Current Events | Tagged , , | 8 Comments

Norway Prepares For The End of The World

The concept of a world-ending economic collapse seemed to be a joke several years ago, but as time has pressed on, more and more people have hopped on the bandwagon of a world-ending crisis, be it a natural disaster or economic crisis. But while some people may be sitting around merely talking about the possibilities of all of the terrible things that could happen, one country is actually doing something about it. The Norwegian government has funded and built a seed vault in preparation for any kind of regional or global disaster [see also Doomsday Special: 7 Hard Asset Investments You Can Hold in Your Hand].

Posted in Agriculture, Fun, Hard Assets, Inflation | Tagged , , | Leave a comment

Bill Gross: Inflation Coming Soon to a Developed Country Near You

In a recent, rather grim article, bond king Bill Gross stated that investors can expect inflation to cut significantly into their returns in the coming years. In fact, he went as far to say that he believes the average return on a nominal basis will fall around 0%. His argument looks at a long history of both stocks and bonds and compares the past to the present to arrive at his final figure [see also Warning: Ignore Bill Gross’ Hard Money Prediction At Your Own Risk].

Posted in Actionable Ideas, Asset Allocation, Inflation | Tagged , , | 3 Comments

Five Surprising Facts About Hyperinflation

Inflation is a common environment for most economies as prices tend to rise as time passes. Governments and central banks around the world mold policies in an effort to curtail inflation and keep it under control. Another less common phenomenon is deflation, or the general decline in prices (and wages) and inflation rates fall below zero. Still an even more rare event is hyperinflation, an issue that does not ail nations often, but when it does, it leaves behind significant damage. For those unfamiliar with hyperinflation and its impact on a surrounding economy, we outline five surprising facts about the phenomenon [see also Doomsday Special: 7 Hard Asset Investments You Can Hold in Your Hand].

Posted in Academic Research, Asset Allocation, Inflation | Tagged , | 23 Comments

Beyond TIP: Five Inflation-Protected ETFs Worth a Look

We’ve all heard of TIP, right? If you’re a long term commodities investor that buys on the dips, you might use this highly liquid ETF as the short term place for your dry powder. In theory, it protects from inflation, since the ETF holds only Treasury Inflation-Protected Securities (TIPS). In practice, the return on these TIPS is based on the movement of the CPI over time. Is this a problem? Depends whom you ask.

Posted in Asset Allocation, Data Releases, Inflation | Tagged , , , , | 5 Comments

Three Reasons Why Gold Is Overvalued

The past few months have put gold in the spotlight, and for good reason. The metal has shot up from below $1,000 per ounce in 2009, all the way to its current levels above $1,500. As markets around the world continue to falter, gold has seen a massive amount of inflows as it has long been the popular safe haven investment. Now that the Swiss franc is pegged to the euro, many consider gold to be the last remaining safe haven, as the once strong franc will now be dictated by the movements of the drowning euro. But with gold seeing its price nearly triple in the last several years, many investors are formulating strong opinions as to whether or not the precious metal is overvalued and due for a huge correction in the near term [for more gold news and analysis subscribe to our free newsletter].

Posted in Asset Allocation, Commodity ETFs, Exclusive, Gold, Inflation, Precious Metals | Tagged , | 165 Comments