Investors may be able to offset potential erosion of purchasing power through exposure to asset classes that offer ownership of real assets or claims on real earnings, hedging dollar weakness and import price inflation, and income growth enterprises.
What about TIPS?
For ten to fifteen years some proponents in the financial media have suggested TIPS but Treasury Inflation Protected Securities have not fared well as a form of inflation protection…
As of 9/30/12 for example, 5-year TIPS yields were negative (source: Bloomberg data)
What has fared well you may ask?
Commodities
Currencies
Real estate
What else has potential?
Global equities with dividend growth
Senior floating rate loans
Ideas as reference point: (indices are not managed and cannot be purchased by investors)
S&P Goldman Sachs Commodity index
NCREIF Property index
______________________________________________________
What do you say? What’s on your list?