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While well we don't know exactly when or if inflation will kick in to but you can prepare yourself for win and if it does get a cattle call is president of topical is structured investments.
And author of dear mr.
Buffett what an investor -- 1002 and 69 miles from Wall Street.
Janet joining us now from the aforementioned Chicago by the way Jenna welcomed the program good to see again.
You know -- well before we get into that you're investing ideas -- and I had a debate earlier today about what's the more insidious to quote your word fear.
In the short term deflation.
Inflation stagflation -- the -- data made up which is.
These steps twice sent loud -- the government.
Well Ali you know -- the most in -- -- in the short run in in the long run is uncertainty.
If we know exactly which -- we're going everyone would know what to do because their strategies everything area.
What's killing people now is that you know there -- they're hot they're jumping around on hot rocks and they don't know quite what to do.
But there are some things that you can do that in general I think maybe.
Pretty good in in most scenarios but let's start with where we're at now and it's deep elation.
But -- seeing isolated price hikes I think Rupert Murdoch is to blame for some inflation because -- two year Wall Street subscription.
Wall Street Journal subscription.
Is up thirteen point 8% vs two years ago worth every -- evening.
And then it every penny especially if they keep having great articles like -- Silberman sun breaking that -- Jefferson code but.
Yeah having found that.
You know people are saying also price hikes in in their food basket things like that at a time when people have higher unemployment and you know that's an uncomfortable time.
For people in general but.
You know -- -- and when we thought deflation a long long period of deflation and we might see it here.
They were doing exactly what our government is doing now and it camping down the short rates keeping the short end of the yield curve.
Very very low and keeping it low and committing to keep it low and we're seeing a lot of central banks across the world do that.
Now I would -- mr.
-- I think -- -- -- stagflation right now and I was wrong we're not seeing the kind of inflation I thought you're going to see with the way that returning money.
Is because we're keeping the short end of the yield -- -- And as long as the government keeps doing that.
The trade to -- -- a deflationary environment are the rolling down the yield curve trades that Japanese banks were doing like.
Who go to local bank -- and the deflationary period.
-- do you know.
By forward rates and -- on the -- her.
Yet if Hitler concerned about.
Inflation there are more ways for the individual.
To heads against that and yeah I can that ever before they people can go out and buy.
The tips the treasury inflation protected securities.
Or yes you can just big -- are.
And on the house that is the greatest thing to do if you heard about -- if you're really worried about hyper inflation.
Well it you know they -- that would seem to be the case and -- some companies as well if you look at as for John Templeton.
At the end of it the 1970s.
-- we -- going into an inflationary environment he maintained that in this -- career.
That was the cheapest time ever to buy stocks and his reasoning was that PE ratios they -- down to around six.
-- a lot of good companies that make things that people wanted and needed.
It -- -- managed and more importantly they -- -- book values so that in an inflationary environment.
It would cost a hell of a lot more to replace the operating assets of those companies would be worth a lot morning inflationary environments.
So that's the content that the trade to do if you're buying stocks.
Not black font -- funds that -- out of the money calls because some stocks are gonna get killed in -- hyper inflationary environment or even an inflationary environment.
So I think if you look at the tried and true strategy of long term investor than passed by the way -- your investment doesn't mean hang on for ever.
Your favorite holding period might be forever.
But if the stock is no longer your favorite you dump it.
And that's what John Templeton -- and Warren Buffett to a different extent he has a slightly different strategy also has the strategies for that as well.
But and it.
Bet that would be the thing to do if you're looking at hyper inflation is by the LU.
And buy things that will increase in value as you say hunting or companies -- operating assets -- just appreciate and -- inflationary environment.
Sage words -- Teva Coley -- it's always a pleasure of hope to see you soon thank you very much.
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