We don’t often think of bonds to help us fight inflation. Core bond funds can get slaughtered, hit by the potential of rising rates (bond prices go down) and decreased spending power in real dollar terms thanks to an increase in the cost of living. So we’ll look to inflation-adjusted bonds. The thing is, the […]
How to protect against inflation.
It is probably the greatest (and potentially dangerous) misconception in the investing landscape, that stocks protect you from inflation. That’s simply not true. While stocks have a long term history of besting inflation, they can fail in many periods, short and extended. Stock markets do not always work as an inflation hedge. And Vanguard suggests […]
Bonds are back. But what did they just say?
Bonds are the adult in the room. And when they speak, we should probably hear them out. This week bonds went on a tear. What were bonds trying to say? They were listening to the ‘Fed Speak’ in the U.S. that left many confused. Of course, the Federal Reserve and the Federal Reserve Chairman set […]
The stock and bond markets are buying the transitory inflation argument. On Sunday Reads.
This week offered another look at inflation numbers in the U.S. Inflation is robust and we see those inflation hotspots or pockets. Transportation costs for goods are soaring. Commodities prices (and especially oil) are on the march higher. Yet the markets have shrugged off the big inflation numbers. The stock and bond markets are buying […]
The inflation watch for investors.
One of the biggest risks to stocks is bonds. The great fear is inflation and a rising rate environment that might come along for the ride. But as I discussed in my most recent MoneySense post, a rising rate environment might not necessarily accompany inflation. After WWII, we had some meaningful inflation and rates stayed […]