John Brynjolfsson, Armored Wolf
There are three ways investors can best hedge against inflation. The first is to own intermediate maturity Treasury inflation protected bonds while hedging out their duration risk (by being short intermediate Treasuries, Treasury futures or paying fixed versus Libor on swaps.) This provides a contractual, tick for tick hedge against any increases in inflation expectations.
Second, investors can hedge against inflation by being long commodities. We prefer the broad c
The week on Risk.net, December 9–15 2017Receive this by email