Underground investor David Fessler, writing at Investment U, says the four best hedges against inflation are gold, inflation-adjusted Treasuries, energy stocks and commodities such as wheat, metals, cattle and fertilizer.

1) Gold

David recommends investors hold 5% of their portfolio in gold to hedge against a declining dollar and an inflationary economy. He says investors can easily buy gold through the SPDR Gold Trust ETF (NYSE:GLD). This tracks the price performance of gold bullion without the hassles of finding and storing the physical metal.

2) Inflation-Adjusted Treasuries

Also known as TIPS, these government bonds are actually guaranteed to beat inflation. That’s because the bond principal and the amount of interest paid increase in step with the Consumer Price Index. David says the easiest way to buy TIPS is through the iShares Barclays TIPS Bond Fund (AMEX:TIP). This year Treasuries have lost 3.9%. TIPS have returned 3.6%.

Full Story:  http://www.contrarianprofits.com/articles/4-best-hedges-against-inflation-you-need-to-know/17307

Related posts:

1. Ten TIPS ETFs To Tip Inflation In Your Favor (STPZ, TIP, WIP)
2. ProShares Rolls Out First Inflation Breakeven ETFs (RINF, FINF, CSM, CPI, RRF, HDG, RALS, VIXM, VIXY)
3. Gold Trading: Physically-Backed Gold ETFs Provide Convenience For Investors (GLD, IAU, SGOL, PHYS)
4. J.P. Morgan Selected by FFCM to Provide Fund Services and Prime Custody for the Launch of Its Market-Neutral Equity ETFs
5. ProShares Launches First Breakeven Inflation ETFs (RINF, FINF)

NYSE:GLD, TIP