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06-20-2022 | 06:14 PM

#1211

OOfff

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Quote:

Originally Posted by Trip7

The high inflation is a result of COVID induced money printing plus government policies over the last few years that discouraged capital investment in legacy energy commodities. It'll likely be around 3 years for all this to shake itself out. Inflation growth will stabilize but we likely looking at high energy prices for a few years. Thank our lucky stars that we have a high paying job in the United States vs the lower class in many emerging markets where these high energy prices will drastically change their access to basic necessities(water/food/shelter).

As high income earners with ample disposable income, the personal impact of inflation can easily be hedged thru cashflowing Real Estate investing or Energy equities.

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buying energy equities is not going to offset the personal impact of inflation. It will help, partially, maybe, if the future hasn’t been priced in, but to advocate for that as a strategy to eliminate the impact of inflation at a personal level is complete claptrap.

06-20-2022 | 06:36 PM

#1212

Trip7

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Quote:

Originally Posted by OOfff

OK. We will revisit this in 6 months and again in 12 months.

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06-20-2022 | 06:46 PM

#1213

OOfff

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Quote:

Originally Posted by Trip7

OK. We will revisit this in 6 months and again in 12 months.

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my bet is that your investment gains won’t come close to offsetting 8.9% (compounding) of an average family’s total spending since the spike began last year. So sure, but let’s talk about exactly how much of a median delta family’s income should realistically be devoted to this hedge strategy

06-20-2022 | 06:55 PM

#1214

Trip7

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Quote:

Originally Posted by OOfff

Sounds good. Looking forward to revisiting this.

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06-20-2022 | 06:56 PM

#1215

OOfff

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Quote:

Originally Posted by Trip7

Sounds good. Looking forward to revisiting this.

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let’s figure out the parameters now. How much of an income should be set aside for this?

06-20-2022 | 07:10 PM

#1216

Trip7

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Quote:

Originally Posted by OOfff

let’s figure out the parameters now. How much of an income should be set aside for this?

As much of a family's disposal income as possible without impacting a family's ability to enjoy life

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06-20-2022 | 07:22 PM

#1217

OOfff

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Quote:

Originally Posted by Trip7

As much of a family's disposal income as possible without impacting a family's ability to enjoy life

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so, what percentage are we talking put exclusively into inflation hedges? You suggested it, so throw out a reasonable number

06-20-2022 | 07:22 PM

#1218

Buck Rogers

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Quote:

Originally Posted by OOfff

let’s figure out the parameters now. How much of an income should be set aside for this?

I want to play. I'm going to stick mine under my pillow...maybe my mattress if I feel bold. Let's see who is ahead in 6 months Trip7, me or you...by the way , what was your plan to beat inflation again?...maybe I missed it. Was it dodgecoin? Gold? Equities?? Green slips??

Can't wait for the level up in 6 months

06-20-2022 | 07:37 PM

#1219

Trip7

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Quote:

Originally Posted by OOfff

so, what percentage are we talking put exclusively into inflation hedges? You suggested it, so throw out a reasonable number

Ok simple math exercise. So an average family would have maybe $6000 a month worth of spending that is inflation affected. 9% inflation bumps that by $549 a month. So basically one would have to put enough money into real estate or equities to hedge that out. Throw 65k at Oil, Coal and Natural gas and get just a 10% return(Energy will return ALOT higher than that) and you've hedged inflation.

We can make the comparison simple. 65k split in 3 energy Small/Mid Caps, Oil(EGY), Coal(BTU) and Natural Gas(CRK) Snapshot attached. See ya in 6 months

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