What steps should you take in your portfolio if you think inflation is about to heat up? Erb acknowledges that there isn’t a great short-term inflation hedge. But he says that intermediate-term government bond funds should largely hold ......
The traditional narrative seems to be that in a rising interest rate environment, commodities and hard metals are the last to run. Bonds would be highly unfavourable especially in the narrative that the FED and other central banks have been irresponsibly printing money and creating inflation that cannot be measured by reported metrics.
Bonds are the worse instruments, since if you own bonds, you can only get a a coupon yield of 3% while newly issued coupon bonds can reach as high as 8%. Your purchasing power will be eroded.
Mark Hulbert have a good piece that provides some different perspective:
[Gold might be up this year, but it’s worth only $800]
