Inflation Hedge Question - is there a way to "go long" the CPI?

Discussion in 'Economics' started by bettles, Apr 26, 2009.

  1. how are reit etf's different from reits? what do you think is the underlying?
    ETF is just a derivative.
     
    #11     Apr 26, 2009
  2. look at third world countries and you'll see what I'm talking about, don't worry people will find ways to pay the higher rents, even if it means 3/4ths of their income after taxes

    most people didn't pay their mortgages not because they couldn't cough it up, but because they weren't willing to pay interest on a loan greater than the value of the property

    and if you still don't get it, 2 years from now you'll see for yourself
     
    #12     Apr 26, 2009
  3. the underlying is multiple REITs not a specific one, meaning it is less riskier, actually much less
     
    #13     Apr 26, 2009
  4. I'm surprised there's even debate here. The only way to "go long" the CPI is TIPS. All ETFs are not directly linked to inflation, unless there's a TIPS ETF that I don't know about, which I doubt.
     
    #14     Apr 26, 2009
  5. There is.
    TIP Equity
     
    #15     Apr 26, 2009
  6. Still wouldn't change what he'd be invested in, which is TIPS, but mainly I'm worried he won't be able to invest properly managing the cash flows, which leads me to the TIPS mutual funds.
     
    #16     Apr 26, 2009
  7. This is completely illogical.

    And that's fine, differences make a market.
     
    #17     Apr 26, 2009
  8. sprstpd

    sprstpd

    Too bad the CPI is always manipulated to the downside. Good luck with those TIPS on trying to hedge inflation - you've actually just locked in an approximate 3% per year loser.

    http://www.shadowstats.com/
     
    #18     Apr 26, 2009
  9. Yeah, it's not like we should trust bloomberg or the bls. Let's trust someone's subjective opinion with no insitutional capacity to even remotely calculate core CPI correctly. Great, shows how informed anybody who reads that site is.
     
    #19     Apr 26, 2009
  10. CRB futures, homie.
     
    #20     Apr 27, 2009