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Originally Posted by Cut-Throat
Where you like to be invested in a highly inflationary environment? Cash?
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Commodities, real estate and other tangible assets, preferably financed with long term fixed rate debt. But I think that TIPS are a quite reasonable choice for a FI portfolio allocation. Again, (on portfolio issues) I agree with saluki. A TIPS ladder should do great.
FWIW, I actually believe that the Fed is behind the curve on fighting inflation and that the bond market has been suckered in by Bill Gross and is underestimating future inflation. As such, I am not much interested in long term bonds unless they are inflation-indexed.
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"And Jesus spake, 'Become thou now fishers of adjustable rate mortgages'" - New Conservative Bible
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