Defensive strategies for dealing with high inflation..?

C_Mababejive

I'm thinking..feed all my expenditure through 0% credit cards and settle in full.

If buying high value items,look for low cost loan/finance offers and use them.

Use mysupermarket.com to trim shopping bills

Hedge stocks of non perishables at todays prices i.e tinned/packetised goods.

Convert monies in savings into defensive equities where possible.

Spend some excess money to treat yourself to holidays and life experiences,always remembering to cut yourself the best deal,making best use of your spending power at times when many dont have spare cash.

Put fixed interest accounts on withdrawal notice if allowed,to be ready for rate rises in the next 12 months.

Feel free to add...

Reaper

Let me guess...

Somebody is going to mention gold in a moment, then somebody else will add silver, then somebody will mention the word "bubble" resulting in a big argument, ending with smeagold and digger meeting at dawn armed with handbags.

vart400

Reaper wrote: »

Let me guess...

Somebody is going to mention gold in a moment, then somebody else will add silver, then somebody will mention the word "bubble" resulting in a big argument, ending with smeagold and digger meeting at dawn armed with handbags.

What about copper?

DiggerUK

Reaper wrote: »

..... ending with smeagold and Digger meeting at dawn armed with handbags.

Not any old handbags, they will be Marks and Spencers handbags.

Cautious_Investor_3

DiggerUK wrote: »

Not any old handbags, they will be Marks and Spencers handbags.

Better buy them now, the price will have risen next month! :rotfl:

C_Mababejive

Dohhh...lets try not to let this one descend into a Gold/Silverbug debate. theres plenty of that going on elsewhere !

There might be other more liquid commodities you could hedge..! I'm thinking special offer grocery items etc etc

edinburgher

Do you really think that inflation on staples will get that bad? I'm referring specifically to your mention of tinned goods etc.

I genuinely can't think of that many items that we buy on a regular basis that even a significant price rise would seriously affect our household budget. Tinned tomatoes and tuna could double in price without it being the end of the world!

Tbh as someone without a mortgage I'd welcome rate rises, but don't think they'll be around until the tail end of the year at the earliest.

Jonbvn

ATM, investing in commodity & agriculture related stocks/funds seems like a good move.

Masomnia

Let's not over-egg the pudding, is 4% really 'high inflation'?

Cautious_Investor_3

Masomnia wrote: »

Let's not over-egg the pudding, is 4% really 'high inflation'?

It is when interest rates are as low as they are.

We live in unusual economic times with inflation significantly higher than interest rates. Furthermore with CPI closing in on 4% and RPI close to 5%, we also need to remember that research shows the actual rate of inflation suffered by older generations (60+) is significantly higher than those two figures.

A person of more mature years, paying say 20% tax and only wanting to use deposit accounts will, at the moment, be losing money each month in real terms.

So, whilst 4% might not sound high, it is a serious problem for many.

The Cautious Investor

luvpump

A simple question & one that has relevance to most of us on here !!

What savings account are indexed linked ?