Agro Commodities & Agricultural Produts

Question by mike1176: What asset classes perform the best during inflationary times?
Stocks, bonds (Corporate, municipal, treasuries) real estate (REITs, commercial and residential) Commodities (gold, oil, Agricultural commodities) ?

Best answer:

Answer by Buy the Numbers
Depends on the time frame, but commodities are your best bet.

Look at the last 5-10 years to see the effects of inflation: commodities, real estate , and stocks go up initially. Bond prices go down. Then the downside of inflation hits – higher production costs + lower demand due to higher priced consumer goods + less free income because of higher food + energy prices. Welcome to 2008-09.

This is why I’m not going long in this market. You can’t build an economic recovery with a printing press. All that does is make the problem bigger and push it out farther in time. Pay now or pay later.

Know better? Leave your own answer in the comments!