Project Syndicate/Noriel Roubini/1-26-2022
“The longstanding negative correlation between stock and bond prices is an artifact of the low-inflation environment of the past 30 years. If inflation and inflation expectations continue to rise, investors will have to rethink their portfolio strategies to hedge against the risk of massive future losses.”
USAGOLD note: Roubini offers three alternatives for hedging the dangerous situation he describes – inflation-indexed bonds, gold, and real estate (including related infrastructure). Gold, he says, is both a good inflation hedge and “also a good hedge against the kinds of political and geopolitical risks that may hit the world in the next few years.”
