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The large infusions of liquidity by Group of Seven governments appear likely to lead to worldwide inflation. What kinds of investments do well in inflationary conditions?
There are a number of classic inflation hedges, says Peter Lindley, head of investments at State Street Global Advisors (Canada). One approach is to buy real estate, real estate-related instruments such as real estate investment trusts (REITs), or shares of companies in the commercial real estate business.
Mr. Lindley also recommends some solid Canadian resource investments, such as energy and metals stocks. Among the metals group, gold is often seen as a good inflation hedge, and buying stocks of gold producers is a good a way of getting exposure to the sector, he said.
On the fixed-income side, real return bonds - issued by the federal government and some of the provinces - are a good bet if inflation catches hold, he said. These are readily available to individuals, with fairly low minimum investments required.
Read the full article here.
There are a number of classic inflation hedges, says Peter Lindley, head of investments at State Street Global Advisors (Canada). One approach is to buy real estate, real estate-related instruments such as real estate investment trusts (REITs), or shares of companies in the commercial real estate business.
Mr. Lindley also recommends some solid Canadian resource investments, such as energy and metals stocks. Among the metals group, gold is often seen as a good inflation hedge, and buying stocks of gold producers is a good a way of getting exposure to the sector, he said.
On the fixed-income side, real return bonds - issued by the federal government and some of the provinces - are a good bet if inflation catches hold, he said. These are readily available to individuals, with fairly low minimum investments required.
Read the full article here.