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Commentary: Using equities as hedge against inflation
- Article from:
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Daily Record (Rochester, NY)
- Article date:
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July 2, 2008
- Author:
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Copyright informationCopyright 2008 Daily Record (Rochester, NY). Provided by ProQuest LLC. (Hide copyright information)
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Inflationary forces are everywhere; from rising oil and commodity
prices, the weak U.S dollar, to excessive government spending and
increasing global demand for nearly all goods and resources.
Inflation expectations have been building in the financial
markets reflected by higher long-term interest rates and higher
commodity futures. Many media reports are even "pounding the table"
about the momentum of rising prices.
Many investors are turning to gold or treasury inflation-
protected securities (TIPS) as hedges against inflation. Although
these are good vehicles for such a hedge, both sectors have been bid
up aggressively in recent years as investors have allocated capital.
The demand for ...
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