For the last few months, the firms of Warren Buffett (Berkshire Hathaway) & Ray Dalio (Bridgewater Associates) have been changing their investment strategies towards more inflation hedges. Buffett has recently increased exposure to energy companies and even a gold miner, Barrick Gold, along with his Japanese company investments that also have mining exposure.
"It is pretty obvious that with interest rates near zero and being held stable by central banks, bonds can provide neither returns nor risk reduction," a team led by Co-Chief Investment Officer Bob Prince wrote in the July report. This sounds like Bridgewater believes that bonds are not a good inflation hedge.
Jason Burack is an investor, entrepreneur, financial historian, Austrian School economist, and contrarian. Jason co-founded the startup financial education company Wall St for Main St, LLC, to try to help the people of Main Street by teaching them the knowledge, skills, research methods, and investing expertise of Wall Street. You can also find Jason's work at his blog website at www.jasonburack.com.