Hedging Against Inflation

Hedging Against Inflation

Is buying a luxury car a good tip for hedging against inflation?

How do you win the fight against inflation? Are there financial instruments or financial products that are useful for hedging against inflation? What qualities of decision making for hedging against inflation require? What is the best asset mix in the war of hedging against inflation?

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Hedging Against Inflation

Source: The Straits Times
Author: Lorna Tan
Date published: 26/2/2011

Inflation is a growing concern for many of us: It doesn't just make our day-to-day lives increasingly expensive but also quietly and relentlessly erodes our life savings.

It is vital to hedge against the dwindling value of our savings and fortunately there are asset classes that potentially do well under inflationary conditions.

Inflation hit a 26-month high of 5.5 per cent last month on the back of rising transport, housing and food prices, easily exceeding the 4.6 per cent rate in December and 3.8 per cent in November last year.

The Government has revised the inflation forecast for the year to 3 to 4 per cent from 2 to 3 per cent.

Mr Victor Wong, director of wealth management at Financial Alliance, expects inflationary pressures to remain high in the short term.



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Investments Singapore