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Best Inflation Hedge: Stocks or Commodities


Right now, we are in an environment with expansion, high inflation rate with low-interest rates. This is normally bad for bonds but good for stocks and commodities such as gold $GOLD and Silver $SILVER . But this time, gold and silver are not doing so well.


The price of commodities is based on supply and demand from the market. Some commodities such as oil $OIL and Copper $COPPER are more useful than others. And you can make an investment based on whether there is expected higher demand. For example, we are seeing a copper supply gap. However, I would prefer investing in a miner rather than the commodity itself.


Are stocks (not commodity stocks) better? If they are undervalued, they can be better. Fundamentals of a great business will always be here whether we have inflation or not.


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https://ishfaaqpeerally.teachable.com/courses/662813/lectures/24173712


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