Asset Class: Traditional Arguments for Inflation Hedge: Inflation Hedge: Traditional Real
ثبت نشده
چکیده
This review, based on “The Long-Horizon Benefits of Traditional and New Real Assets in the Institutional Portfolio” by George Martin (2010), addresses an important topic in the present environment of heightened investor interest in inflation hedges. We included this in InvestorLit for another reason though: to highlight the Chartered Alternative Investment Analyst (CAIA) Association’s Journal of Alternative Investments, to which I subscribe, as a CAIA Charter holder, and which I view as a very good source of papers for InvestorLit Reviews.
منابع مشابه
International Asset Pricing with Nontradable Consumption Goods
We extend and unify existing international asset pricing models for perfect capital markets by allowing both exchange rates and inflation rates to be stochastic and investors to consume both tradable and nontradable goods. We show that country-specific demand for risky assets arises from two sources: PPP-deviationrate differential risks and nontradable-good-specific inflation-rate-differential ...
متن کاملLifetime Ruin Minimization: Should Retirees Hedge Inflation or Just Worry About It?
Inflation for retirees is different from, and mostly higher than, the widely quoted macroeconomic inflation rate for the population. For example in the U.S. the Consumer Price Index (CPI) has a lesser known cousin called the CPI-E (for the elderly) in which the subcomponent weights are based on the consumption patterns of Americans above the age of 62. This suggests that Inflation Linked Bond F...
متن کاملJump-Diffusion International Asset Pricing with Nontraded Consumption Goods
We present a jump-diffusion international asset pricing model with stochastic exchange rates and inflation rates when investors consume both traded and nontraded goods. We argue that in general, the Adler-Duma inflation rate differential may not capture PPP deviation risks, unless all volatilities, drift rates and jumps rates for price levels, exchange rates and asset returns are constant, and ...
متن کاملAre Building Materials Stocks a Hedge against Inflation in Nigeria
This paper investigates the extent to which stocks of Building materials firms listed in Nigerian Stock Exchange (NSE) are a hedge against the expected and unexpected inflation in Nigeria over the period 2000–2011. Unexpected inflation is computed as the difference between the actual inflation and the estimates of the expected inflation. The study used real rate of return on equity and regressi...
متن کاملHorizon sensitivity of the inflation hedge of stocks
In this paper, we study the potential of stocks as a hedge against inflation for different investment horizons. We show that stocks can be a hedge against inflation even if stock returns are negatively correlated with unexpected inflation shocks, and only moderately positively related to expected inflation. Depending on the investment horizon, the optimal hedge ratio can be either positive or n...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2012