Three Asset Classes That Can Actually Outpace Coming Inflationary Price Increases

Seeking Alpha ^ | 10-19-2009 | Paco Ahlgren

[blam]

Three Asset Classes That Can Actually Outpace Coming Inflationary Price Increases

by: Paco Ahlgren
October 19, 2009

This “Excess capacity is temporarily suppressing global prices. But I see inflation as the greater future challenge."

- Alan Greenspan, June 25, 2009

"The US economy may witness double-digit inflation in a few years unless the central bank tightens up its monetary policy… Unless we roll in this whole degree of expansion, we will be in trouble… I am not talking 3-5 per cent inflation, I am talking double-digit inflation in the US.”

- Alan Greenspan, September 9, 2009

--

Man, the Dow hit 10,000! Happy days are here again! Right?

Wrong.

Do you know what I loathe about the word "recovery?" It can mean whatever you want it to. It's sort of like using the word love. You might say you love sushi, or you love beef jerky, or you love Michael Jackson. Or whatever. But that's a whole lot different, for instance, than saying you love your child. We can agree on that, right? Children are way more important than beef jerky. And Michael Jackson.

I can't say I'm Alan Greenspan's biggest fan anymore. He did, after all, betray his roots not so many months ago, when he essentially proclaimed free markets to be flawed. Those of us who have studied his career -- and especially its beginnings -- know better, of course; poor old Alan was just reacting to a political environment that needed someone to whom it could point its ugly, bureaucratic finger. Who better than Alan? Somebody had to take the blame, right? You can't just have a financial meltdown without getting mad at somebody. My only beef with the poor man is that he actually agreed to do it.

[snip}

[La Lydia]

That is extremely interesting. Thanks for posting.

[Paladin2]

“oil, gold, and agriculture are going to be the biggest winners when the dollar starts its slide”

[equalitybeforethelaw]

Don’t forget copper, natural gas, and coal. Also look to trade currencies for an extra boost in total return. The Swiss franc might be a nice snug harbor.

[ex-snook]

Everywhere constant military activity, trade deficits and government borrowing can only be ‘paid for’ with inflation.

There will be no recovery until we modify our role as world policeman and make more of what we consume.

[Paladin2]

I still have to investigate Ag, Pt, Pd, Rh vs. Au.

[Clintonfatigued]

This is going to be useful information in the times ahead.

[SunkenCiv]

Thanks CF.

[metmom]

FYI ping

[MrB]

I'm gonna pimp Vanguard here -

Vanguard Precious Metals Index for those interested in gold, other metals, and mining.

Vanguard Energy Index for those interested in Oil, Coal, and energy production. I know the "energy production" sector isn't going to have ANY growth, but we're still going to be using oil for a long time.

[Dr. Thorne]

In times of great inflation, people realize that their paper money is becoming worth less and less. They move quickly to acquire stuff - real tangible assets that have actual value unlike a piece of paper from the privately-owned Federal Reserve.

[Frogtacos]

I hope everyone remembers to have a nice surplus of food in the pantry and ammo in the safe.

[FreeAtlanta]

make more of what we consume.

Or, drill for it.

[AuntB]

Thanks!

[steveyp]

USO
UNG

Just sold out of my USO position, but will look to jump in on another dip. Accumulating UNG.

[conservatism_IS_compassion]

Apple (AAPL) is at a new high, so you wish you had bought a year ago (I did, but only a nibble. In for a bite, now). But apparently Apple is moving more into foreign markets, and China. If the dollar declines, sales in Euros and yen are gonna look good on Apple’s dollar-denominated profit statement . . .

[MattAMatt]

btt