a onblur=”try {parent.deselectBloggerImageGracefully();} catch(e) {}” href=”http://1.bp.blogspot.com/_28p7XDn4Qb0/Ssh4oGKGY6I/AAAAAAAACDw/cRNPMvszsZY/s1600-h/inflation.jpg”img id=”BLOGGER_PHOTO_ID_5388689584391873442″ title=”inflation” style=”FLOAT: right; MARGIN: 0pt 0pt 10px 10px; WIDTH: 220px; CURSOR: pointer; HEIGHT: 320px” alt=”inflation” src=”http://1.bp.blogspot.com/_28p7XDn4Qb0/Ssh4oGKGY6I/AAAAAAAACDw/cRNPMvszsZY/s320/inflation.jpg” border=”0″ //abr /span style=”FONT-WEIGHT: bold”Right now we are globally in period of low interest rates and low inflation rate. In some economies even with deflation. What should we do when inflation will start to rise again?/spanspan style=”FONT-WEIGHT: bold” How to invest money when inflation is inching up?/spanbr /br /The best investments against inflation are a style=”FONT-WEIGHT: bold” href=”http://stockweb.blogspot.com/2009/07/how-to-invest-in-gold.html”investing in gold/a, index linked bonds, national savings index linked certificates, shares and property.br /br /I will focus more on less risky inflation protected securities like TIPS (Treasury inflation protected securities) or “linkers” (inflation indexed bonds/gilts). Coupon payments reflect rising inflation and/or interest rates. TIPS are generally one of the safest investments. It should be a part of retirement or standard portfolio for better diversification.br /br /There are already some ETFs following TIPS indexes like span style=”FONT-WEIGHT: bold”iShares Barclays TIPS Bond (TIP)/span or span style=”FONT-WEIGHT: bold”SPDR Barclays Capital TIPS (IPE)/span. Recently PIMCO launched their exchange traded funds for inflation hedging span style=”FONT-WEIGHT: bold”PIMCO BROAD U.S. TIP (TIPZ)/span and span style=”FONT-WEIGHT: bold”PIMCO 15+ Yr. US TIPS Index Fund (LTPZ)/span and strongPIMCO 1-5 Year US TIPS Index Fund (STPZ)/strong.br /br /These funds protect against US inflation. International exposure provides fund span style=”FONT-WEIGHT: bold”SPDR DB Intl Govt Infl-Protected Bond (WIP)/span which access inflation protected securities in 18 countries. Around 70 % of its portfolio come from foreign developed countries and 30 % from emerging markets. Regionally holdings include securities from France, UK, Canada, Japan, Brazil, Turkey or South Africa. Contrary to US TIPS this fund offers another diversification against weakening US dollar as international bonds are in 15 different currencies.div class=”blogger-post-footer”http://stockweb.blogspot.com/atom.xmlimg width=’1′ height=’1′ src=’https://blogger.googleusercontent.com/tracker/6675237082283386719-1713926646477319338?l=stockweb.blogspot.com’ alt=” //div
pa href=”http://feedads.g.doubleclick.net/~a/iz27LQTRvj88FGKx0t6bJTBfVNE/0/da”img src=”http://feedads.g.doubleclick.net/~a/iz27LQTRvj88FGKx0t6bJTBfVNE/0/di” border=”0″ ismap=”true”/img/abr/
a href=”http://feedads.g.doubleclick.net/~a/iz27LQTRvj88FGKx0t6bJTBfVNE/1/da”img src=”http://feedads.g.doubleclick.net/~a/iz27LQTRvj88FGKx0t6bJTBfVNE/1/di” border=”0″ ismap=”true”/img/a/pdiv class=”feedflare”
a href=”http://feeds.feedburner.com/~ff/Stockweb?a=9J7L67MPJUg:uGt6BWgrPjw:yIl2AUoC8zA”img src=”http://feeds.feedburner.com/~ff/Stockweb?d=yIl2AUoC8zA” border=”0″/img/a
/div

Last 5 posts by Vlada Kynsky

• Jim Rogers about commodities, China and others. - October 25th, 2009
• How to invest in gold now. - October 18th, 2009
• ETF correlation - October 7th, 2009
• How to invest in gold. - July 11th, 2009
• Bullish on British Pound. - May 12th, 2009