I heard that in 70s, real estate proved to be a good investment during stagflation. This time its very different due to credit crisis - which did not happen back then.
So following seems to be the investment themes for stagflation:
- Short term bonds
- TIPS and I-bonds
- Commodity futures
- Natural resource stocks or mutual funds
- Precious metal funds
- Canadian oil trusts
- Commodity rich country funds: FICDX, FLATX and their currency/bond funds
- Foreign REITs? (interest rate rise can kill them)
Most of the above look over bought right now. Bonds and TIPS have lower yield due to government unserstating inflation.
Late starters can have a look at FICDX, precious metal funds, CANROYs, FNMIX and perhaps foreign REITs.
