Picture du Jour: Prepare for higher inflation
Source: http://www.investmentpostcards.com/2009/11/02/picture-du-jour-prepare-for-higher-inflation/Posted on Monday, November 2nd, 2009 | In Investing Lessons, Market Commentary
Contributed by: Prieur du Plessis (http://www.investmentpostcards.com) -
The graph below shows the historical relationship between the annual change in the oil price and the year-on-year change in the US Consumer Price Index. Should the oil price remain around current levels, the CPI is bound to rise markedly. It comes as no surprise that gold bullion and Treasury Inflation-Protected Securities, or TIPS, have been relatively solid performers over the past few months.
Source: Plexus Asset Management (based on data from I-Net Bridge)
Last 5 posts by Prieur du Plessis
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Tags for this Post:
I-Net Bridge, Investing Lessons, investment postcards, Market Commentary, Oil Price, Treasury Inflation Protected Securities
I-Net Bridge, Investing Lessons, investment postcards, Market Commentary, Oil Price, Treasury Inflation Protected Securities
 About Prieur du Plessis (http://www.investmentpostcards.com)
Prieur du Plessis has 25 years’ experience in professional investment research and portfolio management. More than 1,000 of his articles on investment-related topics have been published in various regular newspaper, journal and Internet columns. He has also published a book, Financial Basics: Investment. Prieur is chief executive and principal shareholder of South African-based Plexus Asset Management, which he founded in 1995. The group conducts investment management, investment consulting, private equity and real estate activities in South Africa and other African countries. Plexus is the South African partner of John Mauldin, author of the Thoughts from the Frontline e-letter, and also has an exclusive licensing agreement with California-based Research Affiliates for managing and distributing its enhanced Fundamental IndexTM methodology in the Pan-African area. Prieur is 52 years old and lives with his wife, television producer and presenter Isabel Verwey, and two children in Cape Town, South Africa. His recreational activities include long-distance running, motor cycling, traveling and reading. |
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