How to make an inflation play?

Discussion in 'Trading' started by kmiklas, Oct 18, 2019.

  1. bone

    bone

    1. Name a stock that can’t be hedged.

    2. Low interest rates are helpful, but I could name hundreds of Fortune 500 companies whose valuations aren’t terribly reliant on interest rates. Tell me how low interest rates drives the valuations for ABC or Apple or Amazon.
     
    #31     Oct 23, 2019
  2. why hedge on inflation? or need to.
    it's the central banks mandate to hedge inflation by giving you currency not holders "INTEREST' as 'hedge on inflation' or compensation for loss of purchasing power.

    if the central bank fails to hedge against inflation. you get riots when people's pay checks are paid less
    inflation is a PAY CUT okay. people get angry and violent when they get pay cut.

    A USD is just a note or same as a bond. you are entitled to receive a basket of goods and services for it.
     
    Last edited: Oct 24, 2019
    #32     Oct 24, 2019
  3. ironchef

    ironchef

    True. :thumbsup:

    I did trade VNQ options from 2013 to 14. :D
     
    #33     Oct 24, 2019
  4. Carlll

    Carlll

    I think that there are several options at disposal. Discuss with your broker what would be suitable for your position. Certainly there are bonds indexed to inflation so this might be only one of the options for you
     
    #34     Nov 23, 2019