Friday, December 14, 2012

How to beat Hyper-Inflation

Here is a collection of notes from various sites on hyperinflation.

http://seekingalpha.com/article/96723-what-effect-will-hyperinflation-have
An excellent article on inflation, with examples from recent history. It does a good comparison between modern US and the Weimar Republic of Germany in the 1920s. At the end it has some brief tips of what to do in case hyper inflation hits your country. Some suggestions include:
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Cash in the form of government and/or corporate bonds, money in CDs and other bank accounts, will be hit the hardest. General index fund type of investments, such as DIA, SPY, QQQ, and the like will also be very bad investments. Stocks, in general, do not do well in a highly inflationary environment. However, if the Weimar experience is any guide, stocks will do much better than bonds or cash. Financial and retail stocks, however, will be the worst investments of all equities sectors. The best investments, in contrast, will be gold, silver, shares of companies whose assets consist of modern plant & equipment, productive lands, and other hard assets that will retain value.
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Some other articles:
http://crisistimes.com/inflation.htm#survive
http://www.peakprosperity.com/forum/understanding-effects-hyperinflation-and-debts-personal-level/10599

Post a comment if you know of more articles.

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