Skip to content

Inflation Protection

Closed investments as inflation hedge Marburg (January 28, 2011) – first early indicators point to a rising medium-term inflation. For savers, but inflation represents a frontal attack on their assets. Closed-end funds can offer an appropriate solution. Inflationary concerns are no longer the business of the pessimists that more and more leading indicators in the medium term indicate an acceleration of the inflation rate. Around the world continue sustained low interest rate policy in the wake of the economic and financial crisis led to a literally flooding of the markets with liquidity.

In combination with the fast economic growth in emerging markets, this fact with a time lag generated a corresponding demand pull, which priced strong rise in particular primary products and raw materials. So, for example, the price of oil has doubled now since its intermediate low in the spring of 2009. According to Federal Statistical Office there was a rise in prices by 1.8% compared to the previous month in December alone. Wholesale prices 2010 increased an average of 5.9% in the Federal Republic. The increase in speed was as high as last in the wake of the second oil crisis in the early 1980s. The transmitted rolling of this imported inflation on the cost of living seems to be only a matter of time. Although speak some fundamental framework data such as industrial overcapacity and the price wage upward spiral still not in gear against a short blast of inflation could be the emerging development perpetuate in the medium term is, if central banks don’t adjust their interest rate policies. This however is given through interest rate increases not necessarily expected induced increase of the operation of debt against the background of the debt crisis economically still shaky economies and a, because now the ECB sees itself here in the dilemma between the fight against of emerging inflationary trends, fiscal stabilization and monetary support of the Economic growth started.