Now that the Engel's coefficient is lower for most families, defending wealth by hoarding alone has limited effect after all, and can be considered a negative way of coping. So a more proactive way to cope is to use the characteristics of the capital market with inflation in times of inflation, and to share the gains therein in the process of rising capital prices. Generally speaking, under the expectation of inflation, commodities, gold, the property market and the stock market is the investment of the "four diamonds". As the current property market is experiencing the most severe policy regulation in history, so we may as well change to a strategic vision of early consumption, targeted to resist inflation.
People who are facing the worry of inflation, if they don't actively manage their finances, their wealth will be greatly reduced without their knowledge. So, hurry up to the 8th Shanghai Financial Management Expo, which will be held at the Shanghai Exhibition Center from November 19th to 21st! During the three-day exhibition, more than 100 exhibitors from the banking, fund, insurance, securities, foreign exchange, collection and other industries will gather together to give you advice to help you defend your wallet and succeed in being an inflation winner
Inflation is coming
Summary: Price increases, just like in the late 1980s, are no longer limited to individual agricultural products such as green beans and garlic, but have penetrated into all aspects of clothing, food, housing and transportation. Rather, it is a full penetration of clothing, food, housing and transportation, spreading to every part of our lives. Undoubtedly, inflation has come to us; it is likely that inflation will continue to continue, and even peak next year.
Eggs are up! Vegetables go up in price! The price of apples went up! Clothing prices go up! ......
"Beans you play", "ginger you army", "garlic you ruthless" has become the norm, more "Sugar Gaozong", "cotton needle" closely followed, everyone is complaining, "apple what" price increases endlessly?
Price increases, as in the late 1980s, are no longer limited to green beans, garlic, such as individual agricultural products, but to clothing, food, housing and transportation all-round penetration, to every part of our lives spread.
What is this if not inflation?
What is this if not inflation?
This time, inflation is the third "wolf", really come!
Price increases everywhere
November 11, the Development and Reform Commission announced the October CPI data, 4.4% of the number of people both ate a surprise, but also seems to be expected. Surprisingly, the CPI figure for the first nine months of the year was still at 3%, but now it has crossed the 4% line and seems to be advancing towards the 5% warning line. Unexpectedly, everyone feels the price increases everywhere, CPI does not go higher how possible?
October urban food retail price monitoring shows that the country's 36 large and medium-sized cities in the 31 monitored products, nearly 80% of the price increase. The monitored food products include vegetables, grain and oil, fresh meat and fruits*** 31 products. Statistics show that, compared with September, *** 24 kinds of products prices rose to varying degrees, accounting for about 80% of the total number of varieties of statistics. in October, large and medium-sized cities, cucumbers, tomatoes, oilseed rape and other 15 major varieties of vegetables, the average retail price of 2.41 yuan per 500 grams, an increase of 10.1% compared with September.
In the cotton prices rose, driven by downstream products, "clothing" is also inevitably affected. In two and a half months, the domestic standard cotton spot price rose from 18,000 yuan / ton to 28,000 yuan / ton, a record high since 11 years. As the end product of cotton fabrics, clothing and other prices have risen by 10% to 30%, the price of down jackets rose most significantly, compared with last year, the average market price increased by two to three percent.
In October, the Development and Reform Commission rose the price of refined oil products, some cities once again appeared the situation of diesel shortage. The rise in refined oil prices, not only to raise the cost of people traveling: gas more expensive, fuel surcharges increased, more importantly, will continue to conduct to industry, tourism and other industries, causing industrial products, agricultural products, service products, and other prices of another round of increases.
Price increases, is becoming the most common keywords affecting the recent life; price increases, so that the purchasing power of our money bag is getting lower and lower; price increases, so that we feel more and more the power and pressure of inflation.
Why is the CPI still lukewarm?
All along, people have been taking the CPI index as a measure of inflation, but the criticism of the CPI is also endless. On this side, prices have been rising all over the world; on that side, the CPI figures are often still lukewarm water, not slow slowly slowly rise it CPI rate of increase and people feel the price increases often there is a big gap.
We may want to look at the source and composition of the CPI data. At present, China's CPI statistics mainly include 8 categories of goods, food, tobacco, alcohol and supplies, clothing, household equipment and maintenance, health care, transportation and communication, entertainment and education, housing. For the 8 major categories of commodities, different weights are assigned, such as the highest weighted category is food, which is assigned a weight of 34%, and the lowest weighted category is household equipment and services, which is assigned a weight of 6% (every year, the Bureau of Statistics will make slight adjustments to the weights according to the situation of residents' consumption expenditures). On this basis, the statistics department selects the consumption habits of nearly 130,000 urban and rural households based on sampling, identifies 262 basic classifications among the 8 major categories, and selects about 600 specific commodities and services for regular periodic surveys.
Therefore, the first reason for the discrepancy between the actual feeling and the CPI is that house prices are not part of the CPI calculation. In the process of compiling the CPI, the cost of living refers to the actual rent of rented accommodation, the interest rate on home loans for owner-occupied housing, property costs, materials for building and renovating the house, utilities, fuel, and so on. Housing prices, on the other hand, are treated as investments and are not included in the CPI statistics. Therefore, firstly, rent rather than house price is included in the CPI statistics, and secondly, the proportion of this item of housing in the CPI statistics is also very small, which is about 13%. The result is that the rapid rise in house prices is not reflected in the CPI data.
The second reason is that the CPI index does not effectively differentiate between residents with different incomes. China's use of the overall CPI, urban CPI and rural CPI three indicators, and does not reflect the different consumption habits of different income residents and the weight of the different. In other countries and economies, various forms of CPIs are often reported for different target groups. For example, in Hong Kong SAR, CPI(A), CPI(B) and CPI(C) are reported according to low, medium and high incomes. Comparatively speaking, the price index according to the target group and consumption habits will be more in line with people's actual feelings.
Recently, Mr. Shen Minggao, Head of China Research at Citigroup Global Markets Asia and Chief Economist of Greater China, said in the Caixin Expert Roundtable - "How far is inflation from us" that due to the errors brought by the statistical methods, the CPI(B) and CPI(C) published by the National Bureau of Statistics (NBS) will be more in line with people's actual feelings. Due to errors in statistical methods, the CPI data released by the NBS was underestimated by 2 percentage points. Considering the real CPI, Shen Minggao believes that China's inflation tolerance is 4% to 6% inflation, and more than 6% is at a relatively high level. "If the Statistics Bureau's figure of CPI reaches 4 percent it is already high." Shen Minggao said.
Who brings inflation
A large amount of money supply, Societe Generale senior economist Lu Zhengwei gave the most basic reason for inflation, "Simply put, a large amount of currency issuance is a necessary condition for inflation, while the recovery of emerging economies for the rise in commodity prices to bring the expectation of rising. Since emerging economies are the major demanders of commodities, this creates a sufficient condition for inflation. The combination of the two ultimately led to this round of inflation."
After the collapse of Lehman Brothers in 2008, major central banks around the world adopted loose monetary policies one after another in an effort to stimulate economic recovery. According to Bank of America-Merrill Lynch estimates, in the first round of quantitative easing monetary policy, including crude oil, copper and precious metals and other commodity prices rose about 15%. November, the United States launched a second round of $600 billion "quantitative easing" program. This will lead to a depreciation of the U.S. dollar as the supply of dollars increases significantly. With the transmission of commodity prices, inflation affects many aspects of life.
On the other hand, due to currency flooding, the global speculative capital flows on a large scale and is constantly imported into emerging economies, triggering a global rise in asset prices and bringing about asset bubbles.
In China, an independent economy, in addition to the input of inflation and the inflow of global capital, its own soaring broad money M2 has also pushed the development of inflation. Statistics show that since 2002 China's broad money M2 has maintained an average annual growth rate of 23%, and as of the end of September this year, the total supply of M2 reached 69.64 trillion yuan. In economics, the ratio of money supply and GDP is generally used to measure whether money is overissued. As of now, the ratio of money supply to GDP in developed Western economies is below 1, while emerging market countries are relatively high, with money supply generally ranging from 1 to 1.5 times GDP, with very few exceeding 2 times. But by the end of September 2010, China's GDP totaled 26.866 trillion yuan, and broad money supply M2 was 2.6 times GDP. By this measure, China's currency has been absolutely over-issued.
Jin Yan, chief analyst of Gujin Securities, has a very graphic analogy, "All the consumer and investment goods around us can be loaded in a barrel and a pool." The barrel is loaded with clothing, food, housing and transportation, in fact, also this is the main object covered by the CPI data, while the pool is the stock market, property market, government investment, luxury goods, etc., we can understand the pool as the asset market. "There are only two options for central banks to increase liquidity, i.e., to put money in, the barrel or the pool." If the inflow of "wooden barrel", will inevitably cause food, clothing, housing and transportation prices; if injected into the "pool", will make stock prices, property prices rise, the formation of bubbles. In fact, this year, due to the introduction of strict real estate control policies, the influx of funds in the property market has been squeezed out of the stock market and other capital markets have not formed a large-scale rise, so a large number of funds into the "barrel", like this year's "Bean you play! ", "garlic you hard" and other phenomena is a typical example, and through the price transmission mechanism pushed to all aspects of clothing, food, housing and transportation, bringing price increases, pushing up the pressure of inflation.
On the other hand, some economists also believe that structural adjustment itself has an inflationary nature. Shen Minggao pointed out that, such as the "Twelfth Five-Year Plan", the future growth of household income should be more than at least not less than the growth rate of nominal GDP, which means that the increase in consumer demand to bring inflationary pressure.
Therefore, the inflation around us, both global factors, but also with China's monetary issuance, economic development model and macroeconomic regulation is inextricably linked. There is no doubt that inflation has come to us; it is likely that it will continue and even peak next year.
Positive response to inflation
The most realistic question in front of us is how to carry out a successful defense of wealth in the context of inflation. Inflation has always been the worst enemy of wealth for the simple reason that it reduces the purchasing power of the money we hold and makes our money less and less valuable. This effect is even more pronounced when inflation increases. As in the recent price hikes like a serialized drama, not only has it affected low-income residents, but middle-income families are also feeling a lot of pressure.
The traditional and simplest approach is to "hoard" and "save". The "dolphin" is a popular term that has emerged recently, as people go to the supermarket to buy cooking oil, rice, flour, toilet paper, and other necessities that take a little longer to store, and hoard them to avoid the risk of price increases. Purchase products that cannot be preserved, such as vegetables, meals and so on, through group purchases and searching for low prices in order to save money.
"Dolphins" and "governors" are not wrong, but due to the improvement of living standards, the expenditure on necessities of life in the total expenditure accounted for a smaller and smaller proportion, although in the context of inflation these methods to play the defense of wealth, but the effect is limited. However, the effect is limited and can be said to be a negative way of coping.
A more proactive approach is to utilize the capital markets in times of inflation to convert as much cash as possible into physical assets, and to share in the benefits of rising capital prices, so that our wealth not only does not shrink, but also has the potential to beat inflation and succeed as an inflation winner.
A most typical example is that the rising prices of agricultural products make our dinner table more and more expensive. As consumers, we have to bear the increased expenses brought to us by the price hikes of cooking oil, sugar, vegetables, and meats; but as investors, we can get much higher yield returns from the commodity markets of soybeans, sugar, corn, and so on. Happily, with the improvement of the investment path, without tons of commodities "hoarding" up, ordinary individual investors can participate in the commodities market through QDII, commodity index funds and other ways. The first thing you need to do is to get in and out of the market, which is of greater interest.
Gold is also an option to consider, this round of inflation caused by excessive currency issuance, from the World Gold Council research report shows that the price of gold and changes in currency issuance there is a certain correlation, when the U.S. money supply increased by 1% each, will bring the price of gold 0.9% rise. When the U.S. second round of quantitative easing policy launched, the international gold price then touched the 1400 U.S. dollars / ounces of the round number mark. Of course, the influence of the price of gold has a large number of factors, but as a special commodity, gold to deal with the function of inflation is worth the attention of investors.
From the performance of the stock market, around the main line of inflation has also generated many investment opportunities. On the one hand, in the capital to promote inflation, the capital market is expected to get a boost, the moderate level of inflation will help the stock market to maintain the center of gravity of the trend of steady upward movement; on the other hand, the stock market is expected to benefit from some of the listed companies in inflation is expected to get a good performance, such as the "coal fly color dance", the recent strengthening of the agricultural, pharmaceutical plate is a typical example. The first is to make sure that you have a good understanding of the situation, and that you have a good understanding of the situation.
Although theoretically, the real estate market is a beneficiary of inflation, investment in real estate can play the purpose of anti-inflation. But from the point of view of the current macro policy environment, investment in the real estate market is facing greater policy risks. Since this year, strict control of the real estate market policy one after another, including the purchase restrictions, higher interest rate cost of loans and even can not get a bank loan, investors also have to face higher tax costs, etc., so in the short term, real estate investment is difficult to be a big task to resist inflation.
Economic experts how to look at inflation
Summary: How is the current inflation formed? How will inflation develop in the future? This is a deep concern for everyone who is worried about inflation. In this regard, experts in the field of economics from their respective perspectives to make an incisive analysis.
Post-recovery and over-issuance of money invites inflation
Lu Zhengwei (chief economist of Industrial Bank)
When it comes to the cause of inflation, the reason is basically the same both internationally and domestically, and that is due to the massive supply of money. From the international perspective, the major Western countries, especially the United States and Japan, until now still in the currency "quantitative easing" on the road forward, which directly for the rise in commodity prices to provide the conditions. And China's domestic is also so. According to statistics, in 2009, the national RMB loans increased by 9.59 trillion yuan, year-on-year increase of 4.69 trillion yuan, about twice as much as in 2008, the credit scale can be described as unprecedented.
Against the backdrop of such global economic stimulus, a number of countries that were not positively impacted by the financial crisis, mainly emerging economies, realized the first recovery, which provided sufficient conditions for the rise in international commodity prices.
So in simple terms, the massive issuance of money is a necessary condition for inflation, while the recovery of emerging economies brings the expectation of higher commodity prices. Since emerging economies are the main demanders of commodities, this creates a sufficient condition for inflation. The combination of the two ultimately led to this round of inflation.
For future inflation expectations, emerging economies took the lead in the recovery took the lead in the policy tightening period, but the challenge encountered is that the monetary policy of countries led by the United States is still quite loose, so even if the future policy tightening, the pressure of the domestic asset bubbles and the pressure of internationalized imported inflation will still be there, and the inflation can not be quickly weakened.
In fact, the current inflation is in our expectation. 2010 inflation level is generally moderate, the target of about 3% can be reached, and the real challenge is in 2011, inflation is still upward trend. This round of inflation is likely to continue until around the first half of 2012.
For the current international inflation environment, statically, emerging economies are facing inflationary pressures, while developed economies are facing deflationary pressures, but looking ahead, the world is facing inflationary pressures. The recent issuance of inflation-protected bonds in the United States (the level of interest payment is adjusted according to the CPI of the previous year and has the ability to fight inflation) has resulted in a negative interest rate, which means that this bond has been subjected to a frenzy of snapping up in the market, which means that the market's future inflationary expectations are very strong. It is not difficult to see, even if the United States such a static view of the risk of deflation are still deflationary countries have such high inflation expectations, the future of global inflation should be expected.
In the United States so that the global local currency countries of large-scale quantitative easing, let the dollar depreciation, emerging economies in the future the biggest risk is the risk of asset bubbles. But the level of asset bubbles is often unrecognizable, and policy can't act forward, or even miss the mark. Fortunately, there is now inflation, interest rate hike policy followed, which also reduces the possibility of future monetary policy operation errors.
The three major currencies "watering" the currency to become worthless
Sun Lijian (Fudan University School of Economics, associate dean, professor of finance)
Look at this round of inflation, the first thing to recall is that the United States in the financial crisis before the big financial innovation. At that time, the U.S. financial innovations contributed to the asset bubble, and the votes in people's hands were able to grow rapidly, even beyond the capacity of wealth. When the crisis suddenly came, the original tickets with considerable purchasing power became non-performing assets.
In fact, the financial crisis could have solved the problem of monetary flooding, but the countries did not take the "hard landing" approach to the crisis, but instead used the injection of capital to prevent financial institutions, large enterprises from closing down." The financial crisis could have brought back the money that had been created in the margins, but instead, the fact is that the debt relationship that should have been lost has been revived, and the large amount of money that had been created before 2008 has not been reduced or absorbed.
And the trigger that led to this round of inflation is that the continuous loose monetary policy in the United States makes people no longer trust the banknotes. He said, from the former gold standard, the value of banknotes is determined by gold, and now, the value of global currency is determined by the three major currencies, namely, the dollar, the euro, the yen, the three major currencies of the injection of water to make the currency becomes worthless.
When people feel that financial assets have been flooded, unreliable, they will be originally invested in financial assets of the funds turned to agricultural products, iron ore, commodities and so on, for example, we are familiar with the financial tycoon Soros, Warren Buffett have begun to invest in hard wealth to seek income, which also led to the upstream resource prices, which led to the downstream investment environment, the consumer environment together with the price increase. Among them, the investment environment price hike refers to the increase in the cost of enterprises, which makes them have to transfer the cost to the production of the final product, forming a cost-push type of price increase. The people will feel very intuitively that prices have risen because of the increase in the prices of agricultural products, and some of these people also have the ability to transfer costs, for example, he himself is a merchant operator, then after he found that living expenses increased, even if he himself is not a producer, he will also raise the prices of the goods on sale in order to hedge the impact of the price increases brought to him. This creates an overall price rise.
However, the ticket flooded Europe and the United States did not have inflation, but instead the country where the commodity had to raise interest rates in advance. Due to the increased return of funds, iron ore exporter Australia had to raise interest rates, while the manufacturing industry and emerging market countries are appreciating their currencies, the influx of overseas funds will cause asset bubbles, so these countries likewise had to take the lead in taking the policy of interest rate hikes, which brings opacity to the world's economic recovery in the future. Not only is the financial crisis coming to Europe and the United States, but now in the previous round of the crisis did not suffer from the country all rolled in.
As long as the U.S. does not give up loose quantitative monetary policy, then the global inflation will have no possibility of peace, the future inflation will only become more and more serious. Only when Europe and the United States, Japan to give up the low-interest policy, a large number of hot money into emerging market countries will slow down the trend, the world economy will recover. When the cost of production is stabilized, the profits of enterprises may rise, the employment situation will also improve, and people's lives will become better.
Inflationary pressures are likely to be greater next year
Li Wei (Standard Chartered Bank economist, China)
Looking at the data, the rise in food prices is the main factor, and this rise does not show signs of slowing down, and inflationary pressures are likely to be greater next year.
Even if there is a slowdown in inflation towards the end of this year, it will only be short-lived and domestic inflation will intensify further in 2011. It can be said that now is only in the beginning stage of inflation, so it is necessary to adjust interest rates. The creation of domestic inflation cannot be blamed entirely on the monetary easing policies of Europe and the United States. Although there is a certain speculative element in the rise in food prices, the overall situation is influenced by the domestic economic recovery, rising demand and abundant liquidity.
The price increases of various commodities are mutually reinforcing. Taking the rise in house prices as an example, people will feel that their incomes are relatively depreciating, and in order to raise their incomes, farmers may have to raise the prices of agricultural products, and businessmen will raise the selling prices of commodities, which will then generate mutual price increases. To curb inflation, we need a comprehensive management tool, and we can't hope to control the price of a single commodity only.
Since asset price bubbles can have a permeability effect, active means are needed to curb the generation of bubbles. The smooth operation of the real economy can not be separated from the smooth operation of various commodity prices. At present, the government has taken the means to raise interest rates, to inhibit asset bubbles can play a certain role in the long run is very necessary.
(This article is organized by the reporter according to the views of the experts)
The war on inflation of the four major tools
Summary: In general, in the expectation of inflation, commodities, gold, the property market and the stock market is to invest in the "four diamonds". As the property market is experiencing the history of the most stringent policy regulation, so we additionally proposed to have a strategic vision of consumption to beat inflation
1. stock market - mild inflation brings good investment opportunities
"Funds released, even if it is not water, but also oil, the last must be Drum up somewhere. If the investment can not beat the CPI, is a decline in purchasing power, therefore, we need to invest." A professor at Peking University said.
And the end result of the flood of money is to lead to significant inflation, from "garlic you hard", "beans you play", "sugar gaozong" to "Apple what"...... Nowadays, the price rise has become an indisputable reality. Accompanied by a variety of items in turn price increases, the people's sense of inflationary anxiety is increasingly serious: the more money in the hands of the more worthless, what to do? What can be invested to resist inflation?
The stock market is a tool against inflation
Generally speaking, under the expectation of inflation, commodities, gold, real estate and stock market is the investment of the "Big Four". However, commodities as the standard and futures markets are not ordinary people to get involved in the place; gold has been a record high, up to 1420 U.S. dollars or more, there are some "high places are not cold" meaning; the property market is experiencing the most stringent policy control, this time to buy is obviously not a good time. Therefore, in comparison, the stock market is now the most passable and convenient, anti-inflation investment tool.
In fact, stocks are the most inflation-proof tool in both the US and Japan. In terms of the relationship between real stock returns and inflation, although the developed markets in the West are different, most stock markets have a similar experience: when inflation is high, real stock market returns are negatively correlated with the level of inflation; and when inflation is moderate, real stock market returns are positively correlated with the level of inflation. The performance of the stock market varies between inflationary phases, as does the performance of the relevant sectors. When the economy is just starting to recover and inflation expectations are rising, resource stocks such as non-ferrous metals and coal are worth paying attention to. And to the economy gradually towards prosperity, but inflation is in a moderate period, various industries have better performance, financial, real estate and other industries performance is more obvious. And in the hyperinflationary period, investment opportunities will be reduced, then you need to choose some of the relationship with the CPI is not big industry, such as science and technology innovation, pharmaceutical industry.
As our stock market history is still relatively short, there is not much regularity can be summarized. But from the recent inflation and the stock market, from the second half of 2006 to 2007, CPI rose significantly in the process, the SSE index performance on the better performance, the stock index from less than 2,000 points climbed to 6,000 points. Then, the world suffered a financial turmoil, inflation turned into deflation at once. And after the government launched a 4 trillion stimulus, the crisis soon passed. early 2009, inflation began to rise again, and the stock market also saw a wave of decent bull market.
Therefore, investors should be fully aware of the investment opportunities derived from inflation, to avoid inflationary pressures and to realize the preservation and appreciation of capital.
Who is the most inflation-resistant?
Anti-inflation will be the fourth quarter, but also a long time to come, the main tone of the stock market investment. And common sense, in the early and middle of inflation, the stock market will appear a trend up, however, investors need to be vigilant: "stocks are the best anti-inflation varieties," does not mean that all stocks can be anti-inflation, only a very small number of stocks can be anti-inflation, most of the sandwiched in the middle of the huge capital expenditures of the manufacturing industry stocks not only can't Anti-inflation, and will be seriously hurt by inflation. The first thing you need to do is to get your hands dirty.
First of all, it is the resource sector associated with commodities and the food-based agricultural sector. In recent times, due to the increasing inflation caused by the international commodity prices, and the recent agricultural products have taken over the banner of price increases, so the agricultural products related stocks have also been correspondingly high. But analysts reminded investors, due to the resource stocks such as non-ferrous metals, coal, etc. rose too much, although the medium term is more bullish, but the short term may continue to adjust. Investors should wait patiently for the right time to intervene, and according to the central bank and the U.S. monetary policy changes at any time to make adjustments to avoid losses.
Secondly, is the big consumer sector. The concept of consumer sectors, including automobiles, home appliances, pharmaceuticals, retail department stores, apparel, food and beverage, etc., from the "12th Five-Year Plan" point of view, the consumer sector will become a "long-term focus of attention". Among them, the pharmaceutical industry should be the most noteworthy. Due to the reform of the health care system and the accelerated aging, life expectancy increases, so that the pharmaceutical industry has entered the development of the "Great Leap Forward" era. From January to August this year, the pharmaceutical industry realized revenue of 697.6 billion yuan, total profits of 71.8 billion yuan, an increase of 27.21%, 35.58%. Profit level hit the highest in the last 10 years. To the pharmaceutical sector focus on companies with product characteristics. It can be said that the characteristics mean differentiation, differentiation means scarcity, scarcity means monopoly, with the characteristics of the product, it has a unique competitiveness. Such as Yunnan Baiyao, Pientzehuang, Duoyiwei, Dong'a Gum, Qizheng Tibetan Medicine and other traditional national specialty products; a batch of specialty strong varieties such as Gynecological Qianjin Tablets (Qianjin Pharmaceutical), Compound Dangshen Dropping Pills (Tensilic), Quick-acting Heart-Saving Pills (Zhongxin Pharmaceutical); specialty chemical preparations and biological preparations with breakthroughs of self-developed or exclusive, first imitation and efficacy (e.g., Riglitazone of Hengrui Pharmaceutical, and the three enterprises are researching and developing the Therapeutic Hepatitis B vaccine); non-prescription drugs like exclusive production and obvious brand advantages (such as Sanjiu Medicine's Sanjiu Gastrointestinal Granules).
Secondly, the utilities sector. Public **** utilities listed companies in the natural monopoly, performance can remain relatively stable. Generally speaking, the utility sector includes electric power, transportation facilities, water and gas supply and other industries, these industries in the process of economic growth in 2010, the performance of the steady increase in income, the future growth is good. In addition, in the inflation, by the upstream conduction from the wave of price increases also spread to the utilities industry, such as electricity will be implemented gradient charges, etc., and the price adjustment will ensure that the industry's profits from the squeeze of rising raw materials.
Finally, it is important to emphasize that "the right stock, at the right price to anti-inflation", rather than "all stocks, regardless of price can be anti-inflation. Inflation expectations are not a reason to make hasty decisions, the most important one is to consider the quality of the stock and the intervention price, and after more than four months of rise, many stocks have been expensive. And until there are tradable securities at the right price with a sufficient margin of safety, be sure to keep your wallet tight.
2. Commodities - multiple ways to participate in commodity funds
In addition to equities, commodities are another large class of investment vehicles to fight inflation.
Since the third quarter of 2010, along with the warming of global inflation expectations, the prices of major international commodities have skyrocketed. Statistics show that in October on behalf of the commodity trend of the CRB index rose 4.81%, commodities ushered in the general market, which rose for the cotton, sugar and rubber and other soft commodities, such as New York cotton, raw sugar futures rose 22.92%; followed by agricultural products, Chicago corn, soybeans and wheat rose 17.67%, 10.91% and 6.41%, respectively, soybean oil futures Up 9.34%. What can be seen is that inflation-related asset prices are moving higher.