Five Assets for Hedging Against Dollar Inflation or Deflation

photo.cmsAs the stock markets continue to recover (assuming it has not done yet), the talk of inflation is coming back in the news. Our government has pumped in so much of printed money in the system that there is a concern that US economy will experience inflationary times. There is no denying that inflation will take away chunk of our real returns from overall investing returns.

Many of the well known economists and investors (including Warren Buffett) have expressed concerns about inflation. Among all the experts and pundits, I believe, David Swensen gave a very pragmatic and down to earth response to this question in an interview on WealthTrack. According to Swensen, he does not know what will happen. He cannot predict it. There will be inflation if the recent pumping of money supports the economy and growth returns to US economy. If there is no growth, then there will be deflation of dollar value. His message was to address these issues with proper diversification and asset allocation. As individual investors what can we do to (or rather how can we) blunt the effect of inflation or deflation. Following are five aspects one can look into to manage their asset diversification.

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Dividend Tree Potpourri – September 20, 2009

During the week I participated in blog carnivals and continue to read articles from fellow bloggers. I am listing some of the articles that I enjoyed reading.

Economy, Finance, Investing.…..

These are some diverse set of articles from fellow bloggers and business magazines. I hope you enjoy reading all or some of these interesting posts.

MCD and MMM Dividends are Covered

The season for reporting second quarter earnings is warming up. I hope to see somewhat better picture of the state-of-economy and who is coming out with flying colors. I am following few selected ones based on my holdings and/or my potential opportunities.

McDonalds Corporation (MCD): The 2Q09 earning per share was $0.98 (vs. $0.87 in 1Q09).

  • The key highlight was reduced overall profits on y-o-y basis (vs. $1.04 in 1Q08) due to fluctuations of exchange rates.
  • Quarterly dividend of $0.50/share is well covered with earnings. The quarterly payout ratio is 51%.

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