Inflation Trade

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Dictionary Says

Definition of 'Inflation Trade'

A method of investing that seeks to profit from an overall increase in price levels. The inflation trade often involves trades in commodities, such as gold and oil, because their prices rise when inflation occurs. Everyone needs to protect themselves against inflation, but the term "inflation trade" refers to a speculative practice of attempting to profit when inflation occurs rather than just hedging against it.
Investopedia Says

Investopedia explains 'Inflation Trade'

Inflation is caused by the Federal Reserve's printing of money, and it is a detrimental force that erodes the value of money over time. It means that people cannot buy as much with their money tomorrow as they can today. Inflation also reduces the impact of investment earnings and makes it risky to hold too much of one's nest egg in cash. Because of inflation, people must expend time and effort just to preserve the value of the wealth they have accumulated, let alone to increase its value. To increase wealth, people must select investments with returns that can outpace inflation, such as stocks.
Search results for

'Inflation Trade'

  • Stagflation, 1970s Style

    http://www.investopedia.com/articles/economics/08/1970-stagflation.asp
    ... Under ยป Economics, Interest Rates. Until the 1970s, many economists believed that
    there was a stable inverse relationship between inflation and unemployment. ...

  • BANC Some Inflation Protection With These Nations

    http://stocks.investopedia.com/stock-analysis/2010/BANC-Some-Inflation-Protection-With-These-Nations-EWZ-EWC-EWA-NORW1115.aspx
    ... These natural resource rich nations make great inflation hedges due to their strong
    trade balances and higher interest rates that support their currencies. ...

  • Despite Inflation Woes India Outshines In Asia

    http://stocks.investopedia.com/stock-analysis/2011/Despite-Inflation-Woes-India-Outshines-In-Asia-PIN-EPI-IFN-IBN-HDB-WIT-RDY-TCL0922.aspx
    ... and could signal that the rate hikes have finally started to rein in inflation. ... equities
    have fallen towards their 52-week lows, but they now trade in line ...

  • 5 Stocks To Play The Low Dollar Trade

    http://stocks.investopedia.com/stock-analysis/2009/5-Stocks-To-Play-The-Low-Dollar-Trade-FCX-CL-CAT-NEM-AFL1106.aspx
    ... concentrated play on a lower dollar as well as higher inflation expectations going ...
    The Dollar Falls.) Use the Investopedia Stock Simulator to trade the stocks ...

  • Inflation Insurance Stocks

    http://stocks.investopedia.com/stock-analysis/2010/Inflation-Insurance-Stocks-KO-MCF-DE-PKX1129.aspx
    ... What you really during periods of rising inflation are businesses that can increase
    prices without ... Shares do trade at a 52-week high of $64 and yield nearly 3 ...

  • 5 Inflation-Beating Bond Picks

    http://www.investopedia.com/articles/bonds/09/fixed-income-investing-inflationary-environment.asp
    ... bonds and higher rated issuers (like Treasuries) tends to close as inflation heats
    up. ... as they have all the features of debt obligations but trade like stocks. ...

  • Inflation Protection Shouldn't Be Complicated

    http://stocks.investopedia.com/stock-analysis/2009/Inflation-Protection-Shouldnt-Be-Complicated-CPI-SHV-FXY-IAU-DJP-TIP-WIP-UDN1116.aspx
    ... (To learn more about protecting your portfolio from inflation, see Curbing The Effects
    Of Inflation.) Use the Investopedia Stock Simulator to trade the stocks ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Inflation ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/inflation-risk.asp
    ... 4.19 The Equation of Exchange; 4.20 Inflation; 4.21 Phillips Curve; 4.22 ... Analysis:
    5.1 Introduction; 5.2 Production Possibility Curves; 5.3 Trade Efficiency Rule ...

  • Macroeconomics: International Trade | Investopedia

    http://www.investopedia.com/university/macroeconomics/macroeconomics11.asp
    Macroeconomics: International Trade. ... By Stephen Simpson International trade is the
    exchange of goods, services and capital across national borders. ...

  • CFA Level 1 Study Guide - Macroeconomics - The Consumer Price ...

    http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/consumer-price-index.asp
    ... 4.19 The Equation of Exchange; 4.20 Inflation; 4.21 Phillips Curve; 4.22 ... Analysis:
    5.1 Introduction; 5.2 Production Possibility Curves; 5.3 Trade Efficiency Rule ...

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