Anyone who wants to protect themselves against unexpected fluctuations in inflation should definitely not buy gold, as a recent study shows. What investors should bet on instead.
Gold is not the best hedge against unexpected inflation. Bitcoin neither. A far better hedge, however, is a long position in
TIPS (Inflation bonds) combined with a short position in US government bonds, according to a recent study by Vincent Deluard, Head of Global Macro Strategy at StoneX. This can be easily built with ETFs.
A recent example is the market reaction to last week’s worse-than-expected inflation report. From the announcement of the figures to the end of the week, gold lost 0.4 percent of its value and Bitcoin lost 3.1 percent. The long TIPS/short Treasury position, however, rose by 0.4 percent.
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