Hedge Against Coming Inflation

[Dottore]

There are some smart people on this board, and several of you have tangentially mentioned the coming inflation (and even hyper-inflation).

My question for this thread is very focused: How best do you hedge cash against inflation when you need to remain relatively liquid with that cash?

I'm not too interested in gold for a whole lot of reasons. And I don't want any more real estate for liquidity reasons.

Art, classic cars etc. also seem to be going south and are in any case not liquid.

Wayne suggested some stocks with global exposure (IBM, Coca Cola and Caterpillar)—but having just lost a bundle on the market, I don't have the balls to get in again—at least not just yet.

I'm thinking there must be some smart currency or commodity based play.

Is there a currency somewhere that would be a good $inflation hedge? What about oil, diamonds, pork bellies, mustard seed...?

Anyone???

[id10t]

Guns, high cap magazines, and ammo....

[ruf-porsche]

Originally Posted by Dottore

Is there a currency somewhere that would be a good $inflation hedge? What about oil, diamonds, pork bellies, mustard seed...?

Anyone???

Chinese Yuan

[BReif61]

Originally Posted by id10t

Guns, high cap magazines, and ammo....

Never lose much with guns.

[red-beard]

And if things really come to a crisis, guns are much more useful than gold.

[dhoward]

Alpaca breeding.

[Seahawk]

Inflation Indexed Securities: http://www.newyorkfed.org/research/conference/2009/inflation.html

That and armed alpacas.

[Gogar]

Oil Futures, and zombie repellent.

[svandamme]

real estate: houses and land

[Axeman]

Food, water, guns, ammo, cigarettes, booze, agriculture stocks (like sugar, cocoa, etc).

[competentone]

TBT

http://finance.yahoo.com/q?s=tbt

And you should own some gold for "insurance" against complete currency collapse -- which is what people like Bernanke and Paulson seem to be trying to bring about.

[grudk]

Still a bit early to be worried about inflation, IMO. I'm holding cash now. I won't dare market time equities -- we may retest lows, or not. Real estate should be good eventually - still too high in many areas, but some spots are looking better than others. Not convinced about gold, though 10% of assets, maybe...???. So, I guess I have no idea. Neither do the 'experts,' though I'm sure they want to sell you something.

[Porsche-O-Phile]

Guns, ammo, booze, canned goods, real estate, cars and other tangibles.

I'm doing all of the above.

[CurtEgerer]

Put everything you own into CRANE & COMPANY (CR on NYSE)**.

**Sole supplier of currency paper to the US Treasury.

[911Rob]

I know a few guys with deep pockets and they seem to really like shark lending. Can be risky, but if you stay away from the risky stuff and get lots of security on the loans, you can make a ton of dough.

If interest is going to keep going up, then so does your rate. Most of the dough is short term cause the interest rates are high.

I can hook you up with a couple guys at the coast if you like?

[Dottore]

Originally Posted by 911Rob

I can hook you up with a couple guys at the coast if you like?

I've always wanted to know someone who could "hook me up with a couple of guys on the coast". ;-)

But seriously, no loan sharking for me. Like most Liberals, I have high moral standards.

Just looking for something relatively liquid that's not going to lose as much value as I suspect cash—or at least USD-linked cash—will in the coming year.

[Dottore]

Originally Posted by competentone

TBT

http://finance.yahoo.com/q?s=tbt

And you should own some gold for "insurance" against complete currency collapse -- which is what people like Bernanke and Paulson seem to be trying to bring about.

You're a funny guy.

[911Rob]

I'm sure you understand that it's "not" technically loan sharking; but higher interest private lending. It's a great way to make some money if you have cash doing nothing? The people that I know are legitimate business people; all above board.

Anything over prime rate to me is a shark loan; ha, ha!
My cash is all into RE right now, but I'm running no debt so I can relax for '09 somewhat. I'd really like to sell out my current sub-div and then just work through rezoning and design on my other for the next couple years.

When I have cash on hand; I can't help but think that I'd be snooping around for some great RE buys? Sorry I couldn't help out?

[911Rob]

What about a short term RE investment (3 years) with good return and profit sharing. I'm working with Canada's largest RE land developer and they're putting out a new OM this month that I'll be getting involved in. fwiw?

[Tidybuoy]

Originally Posted by red-beard

And if things really come to a crisis, guns are much more useful than gold.

Until you get hit on the heat with a gold bar....I hate when that happens.