2min chapter

Animal Spirits Podcast cover image

Talk Your Book: Massive ETF Inflows

Animal Spirits Podcast

CHAPTER

How to Hedge Against Inflation?

The rate you get on tips is going to bake into whatever the inflation expectations are. They pass on that inflation adjustment every month through the forms of dividends. You're actually going to be taxed on that phantom income as an individual tips holder, but you're actlly not receiving it. So what is the best way to hedge against inflation? I guess it depends on the inflationary regime. But like gold, for example, which all the ingredients necessary to bake the gold pie of high returns came to fruition, except performance did not match. There's other factors that could weigh on the price of gold. And one of that is a stronger dollar.

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