Deflation, Stagflation, Inflation, Hyperinflation and Uncertainty
I've read a lot about having a three legged stool approach as a way to preserve and grow wealth involving a hedge for
- deflation (depression, falling prices)
- inflation (status quo, slowly rising prices)
- uncertainty
It would seem to me that we have two additional possibilities on our horizon due to our federal debt levels:
- stagflation (steady prices for extended time. Think Japan. We'd better load up on all the yield we can get.)
- hyper-inflation (rapidly rising prices. Think Venezuela. Look out for political unrest.)
Are you starting to hedge for stagflation or hyper-inflation?