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Posted by Steven L. on August 19, 2006, 1:21 am
NewYorker wrote:
> What categories of Fund or ETF are good inflation play? In other words,
> what are the Fund or ETF that will soar in high inflation environment? Says
> inflation goes to 5-8% or fear of such inflation?
For inflation:
- Precious metals funds or ETFs, obviously.
- Natural resources funds.
- Funds investing in countries that make money selling commodities
abroad. Russia, for one. LETRX, for example.
- Funds that invest in the currencies and/or the bonds of foreign
countries whose currencies are more stable than the U.S. dollar. PSAFX,
for example.
For fear of inflation:
- Money market funds. (Presumably the Fed will be so afraid of
inflation that it will jack up short-term interest rates to try to cool
the economy. This will result in high yields for MM funds.)
--
Steven D. Litvintchouk
Email: sdlitvin@earthlinkNOSPAM.net
Remove the NOSPAM before replying to me.
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