If you believe like I do that we are in for inflation in the future then you may be asking yourself how can I invest to take advantage of the coming inflation. Here are some ways people can invest to hedge against inflation. I have listed ETF’s next to each strategy that you could use.
- Sell dollars or buy other currencies.
- Own precious metals like gold or silver. (DBP – PowerShares DB Precious Metals)
- Own industrial metals like copper or steel. (DBB – PowerShares DB Base Metals)
- Own hard assets like agricultural commodities. (PAGG – PowerShares Global Agriculture)
- Own energy like oil or natural gas. (USO – United States Oil)
- Sell treasuries. (TBT – UltraShort 20+ Year Treasury ProShares)
I don’t know of an ETF that deals directly in currencies, but if you wanted to play currencies I would buy foreign stocks or bonds.. Like WIP – SPDR DB Intl Govt Infl-Protected Bond or VT – Vanguard Total World Stock Index ETF.
These are just some of the most obvious ways to play inflation. I have purchased some shares of PVX which is a Canadian Oil Trust which gives me exposure to oil and a slight long foreign currency effect also. Some other options are coal and steel.
As always these items are not intended as investment advice. Please read the disclaimer. I am not a professional financial advisor.
