Kawakami: Levisohn’s advice which I agree except that investing in stocks covering these areas is safer than investing in commodities more directly.
He advises us to not to buy commodities that have gone up sharply such as gold and other precious metals. Oil and base metals may be a better option.
He also recommends some currencies, but that is more risk than most of us like to take.
Dividend paying stocks is also a good ploy as a hedge against inflation.
Even though many average investors have gone into bonds like lemmings, it is a dangerous investment when inflation occurs. JP Morgan, a savvy investment bank has been selling on the Treasury Bonds from Ten Years to longer term.
I think the economy is starting to pick up in spite of all the uncertainties from our political Armageddon and disastrous fraud in the Housing Mortgages by our Wall Street Banks, the powerful are making sure that most of this would be swept under the rug and given a clean bill of health at the expense of many homeowners who made the wrong choice of taking advantage of home equity loans with fraudulent Contracts.
When increasing wealth becomes the only goal among our elites, scandal always occurs. With our corporations owning everything we hear, watch, and read, it bodes poorly for Americans to get the real truth. One piece of good news today! The Federal Reserve has decided not to appeal to the Supreme Court or more aptly the Corporate Court. This allows us to know what “loans” were provided by the Fed to the various banks during the bailouts.
Remember, no one is smart enough to predict the future. The only thing we can do is to very widely diversify all over the world and include some commodities in your portfolio. For example, I am in Global Fixed Income to account for currency fluctuations against the dollar at a much higher level than usual.
Jim Kawakami, Oct 26, 2010, http://jimboguy.blogspot.com