As the mass of investor’s attention seems to be focused on deflation, in a piece titled “Commodities and Inflation,” Denis Chaves of Research Affiliates, argues that a full spectrum of potential economic outcomes should be considered, including the potential of inflation. The research note focuses on the use of commodities in a portfolio as a method to hedge against inflation. Business prices are co-related to the price of commodities While many stock investors think they are hedging their portfolio against inflation with stocks, the report notes that inflation is non-correlated to stocks. The theory is that a business raises its prices when…
Going For The Gold: Inflation And Commodities
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.