Strong Businesses As The Ultimate Hedge Against Inflation?

Gold, Silver, Bitcoin? Sure, But we believe strong Businesses still hold the crown as the ultimate hedge against inflation.

As great as everything mentioned above is at protecting against inflation. We ultimately believe the best hedge against inflation is with strong businesses.

Hidden Inflation

“Remember, stocks go up over time, both nominally and in real terms, but gold has only increased nominally. That's a big difference...” - Mike Norman

Let's face it: Gold has been dismal. Everyone who bought into the idea that this metal would somehow protect against inflation and central bank "money printing" has been duped. Gold has been a lousy performer.

Logical Explanation

If you're worried about inflation, own common stocks. Nothing -- I repeat nothing -- has performed better as an inflation hedge over the long term. And this is not going to change. It's simple logic. If there is inflation, companies will raise the prices of the goods and services they sell to protect profits.

Increasingly Common

“World’s largest gold deposit discovered in Siberia” - Imelda Cotton ( October 30th 2020).

You can't eat gold, you can't cook with it, you can't light your home with it, you can't burn it to keep warm, you can't put it in your car to make it go. You can't even pay your taxes with it. And that last point is a big one because that is what has always defined money - what the state will accept for payment of liabilities and debts.

Bitcoin

Unlike Gold, We believe Bitcoin is a wonderful hedge against inflation/global uncertainty. We believe has a strong chance of meeting all criteria outlined above in due time. Although we believe it still comes second to strong businesses.