Hey everyone, this is a quick video discussing the reaction of different “inflation hedges” after the recent consumer price index reading. I’m recording this video on May 19th, 2021 and one week ago we received news that the inflation rate in the United States was 4.2% over the past year through April 2021. That’s the highest reading in over a decade.
So what happened to common “inflation hedges” over the following few days? These would be commodity ETFs and mutual funds, gold, silver, and the latest and most hyped inflation hedge… cryptocurrencies.
Over the few days following the inflation report, commodities were flat, depending on the specific index. Gold and silver were flat. And many cryptocurrencies were down significantly… actually in a bear market. In fact, as I record this video, major cryptocurrencies are in more of a crash… down more than 40% with online brokerage websites failing regularly due to high traffic volume.
So these “inflation hedges” were flat or down when we would hope for them to go up in value, right?
It’s just another example over the past year of the principle that financial markets have a way of disappointing the most people… especially those who chase the latest headlines.
You can benefit from this craziness by having a plan… and investing regularly according to that plan.
Have any questions? Send me a message!