Ask HN: How are you hedging against inflation?

Inflation fears when interest rates are at 0%? If inflation starts rising, the fed will raise interest rates and inflation will disappear.

Yes, rising interest rates will cause pain, but not as much pain as significant inflation, so the fed will not hesitate.

Inflation isn't a threat, at least it isn't expected to be outside of YouTube and media scare stories, https://fred.stlouisfed.org/series/T10YIE

Inflation based on the TIPS spread (which is just a market prediction of expected inflation) is basically where its been for years.

Secondly, hedging inflation with gold has historically been a bad idea. Unless we see hyperinflation (which doesn't seem likely in the US for a number of reasons) it's far better to put your money in assets which produce value over time like stocks. The problem with gold is that if you're investing in it as a store of value and inflation remains steady at around 2% you're looking at around a 2% annual return which is awful.

Crypto could be more promising, not because it's a store of value, but because it's a new asset class currently experiencing mass adoption making it likely to continue growing in value if this trends continue.

Personally I'd keep it simple. Invest in stuff you believe in and don't try to be too smart. Predicting inflation before the rest of the market based on things you've heard on YouTube or Reddit then making investment decisions based on that is a good way to make a bad investment decisions. IMO inflation should always be seen as a drag if you're a saver. Any money outside of your reserve fund would probably be better invested somewhere it can appericate in value at a rate above inflation.

I assume you mean his liking to the Weimar Republic hyperinflation on Twitter? IMO it doesn't make sense, as the situation is completely different.

Germany lost the first world war and had very high and quite sudden war debts plus suddenly had to pay reparations amounting to about 25% of GDP, denominated in foreign currency - this is important. Germany then printed money (this is similar to today) and bought foreign currency in the FX markets, at essentially any price available (this is not). The money flowed to the war winners, out of the domestic economy. This caused instant and quite strong devaluation of the German currency.

What the US does: It invests a comparatively tiny amount of money (~$2 trillion, local economy, where it will cause actual economic action (people buying things and services), to make up for lack of demand caused by Covid. FX markets are not touched. AFAIK it is aiming to finance at least a part of this through taxation.

When you buy stocks there is someone on the other side selling stocks, the question is, if that person has fiat now, why isn't he spending it? If he isn't spending it (as can be seen with low inflation), why would he sell the stock in the first place? Since companies' credit rating rises with the value of their stock, they can afford to borrow more and grow their company. Why isn't this happening? Why is Apple sitting on USD abroad and borrowing domestically? Figuratively speaking: Why is the seller of the stock happy with lending to the company whose stock he sold? By putting his money in his bank account he increases his savings which get handed to corporations through borrowing. Or rather, he escapes from negative interest rates by buying government bonds.

None of this makes sense. What is happening with all the new money that is entering the economy? Is there really someone with a Scrooge McDuck vault out there? Of course, if inflation picks up that vault has no reason to exist anymore and the stimulus checks raised inflation as intended.

I don't.

There is no reliable way to predict inflation accurately, at least for more than a few years into the future.

I should be fine with my 100% equities portfolio with a SCV tilt anyway.