Spend it immediately so it dosent lose value. (I’m joking but just saying index ETFs is boring)
Ask HN: How are you hedging against inflation?
11–20 of 45 posts
Re: Ask HN: How are you hedging against inflation?
#12ETFs for retirement fund. And I will likely get downvoted into oblivion like every time I mention crypto on HN, but crypto. It's the only way I've found to hold cash (in stablecoins) and receive above inflation yield.
right, and what im learning now that what youre actually doing is throwing your money at an autonomous smart contract, which for some reason, seems less crazy
Re: Ask HN: How are you hedging against inflation?
#13Stocks, bonds and real estate. Beating inflation is not that hard.
Crypto is way too risky for my tastes.
Re: Ask HN: How are you hedging against inflation?
#14Gold has this mythical reputation of stability, but if you look at the data, that's not true. It can swing by a factor of 2x one way, then swing all the way back, within ten years: https://www.xe.com/currencycharts/?from=XAU&to=USD&view=10Y It's a speculative asset like anything else. It might make sense as part of a portfolio, but don't expect it to perform miracles.
I use an investment company that invests for me in a mix of ethical stocks, bonds, and yes, unfortunately, some gold. None of this will do me any good if the current stock market highs turn out to be a bubble.
Re: Ask HN: How are you hedging against inflation?
#15My mortgage is fixed rate. The higher inflation gets, the smaller the real value of what I owe.
Re: Ask HN: How are you hedging against inflation?
#16real estate; you can buy out right and property value will rise with inflation. Or you can get a fixed mortgage which means you will owe less if inflation kicks in.
Alternatively owning regular assets should help; stocks, gold, crypto, art, etc
Re: Ask HN: How are you hedging against inflation?
#17ESG funds, crypto, properties. Looking to get into commodities as well, but not sure which to choose considering space mining is coming in a decade or so...
I never understood the proposed business model for asteroid mining. Maybe you mean the moon? Either way, getting stuff down is expensive. You would need to mine a lot of expensive stuff for it to be worthwhile. But if you dump a lot of stuff into a market, you might tank the price. (Yes, this is hand-waving. But I think the general points should hold.)
Re: Ask HN: How are you hedging against inflation?
#18Honestly, don't get your economic advice from youtube. Almost any introductory econ textbook will be more educative. Almost zero actual economists think inflation is coming to the US. It's only the (conservative) pundits that produce these unfounded fears. Expanding the money in circulation alone is not enough to trigger inflation (see 2008+).
Expanding the money in circulation may not increase the inflation rate, but I would believe that it does trigger inflation in other asset classes such as stocks and real estate. I'd be happy to be disproven with data, but my anecdotal experience since 2008 is that while my purchasing power hasn't budged much (for things like electronics, travel, food...), my ability to purchase a house from my wages has decreased and…
CPI includes housing, though.
Obviously it's fair to say that inflation may be measured more in some prices than others, but you're sort of muddying the waters by referring to housing as both an asset class and a cost-of-living, right?
Perversely, if inflation primarily affects "assets" (i.e. of the investment/speculation type), the premise of the original question here is sort of flawed: if increasing the money supply increases the price of assets, those with savings get richer—exactly the opposite of the ordinary understanding of "inflation!"
Re: Ask HN: How are you hedging against inflation?
#19Inflation-linked bonds offer a direct hedge over inflation. Not exactly sure what the downside is, so you’ll have to look that up (or someone else may comment on it).
Crypto/gold/real estate are not hedges against inflation. They’re pretty wild bets. If you do this, make sure you diversify...
On a side note, inflation is a good thing cause it makes you want to invest your money. Seeking a refuge value is not playing the capitalism game. It’s better for everyone if you invest your money in some active venture (like stocks or bonds) rather than in some sitting asset...
Re: Ask HN: How are you hedging against inflation?
#20ESG funds, crypto, properties. Looking to get into commodities as well, but not sure which to choose considering space mining is coming in a decade or so...
I never understood the proposed business model for asteroid mining. Maybe you mean the moon? Either way, getting stuff down is expensive . You would need to mine a lot of expensive stuff for it to be worthwhile. But if you dump a lot of stuff into a market, you might tank the price. (Yes, this is hand-waving. But I think the general points should hold.)
Asteroid mining! Does anyone else think immediately of "Elite"? Though I was only ever 'Mostly harmless', playing on a neighbour's BBC Micro until I got a ZX Spectrum 48K :-)