Commodities as inflation protection: Why your portfolio needs real assets
Commodities are the most direct hedge against inflation. 0.82 correlation to money supply. Learn how to build your portfolio to be inflation-proof.
Commodities as protection against inflation: The scientific basis
Huber analyzes the correlation between money supply and raw material prices (Figure 72, 73). The result: Commodities are the most direct inflation hedge.
0,82
Correlation of money supply to commodity prices (1970-2020)
Commodities vs stocks in inflationary phases
Commodities beat stocks in inflation
In both inflationary phases (stagflation 1970-82 and commodity boom 1990-2008), commodities massively beat stocks.
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Academic source: Master Thesis
Development of optimal asset allocation in times of expansionary monetary and fiscal policy
Daniel Huber, M.A. — Mainz University of Applied Sciences, 2020 | Supervised by Prof. Dr. Arno Peppmeier
13,174 words · 92 figures · 39 tables · Markowitz efficiency line analysis
Download full thesis (PDF, 6 MB) →
Daniel Huber, M.A. — Mainz University of Applied Sciences, 2020 | Supervised by Prof. Dr. Arno Peppmeier
13,174 words · 92 figures · 39 tables · Markowitz efficiency line analysis