Investing in a deflationary world


#1

Originally published at: http://whichinvestmenttrust.com/investing-in-a-deflationary-world/
Despite the best efforts of the central banks of the world’s developed economies, inflation continues to be absent across the world. This presents risks and challenges to investors looking for strategies to invest to counteract deflation, but history has something to teach us here. Inflation has been such an ingrained element of most major economies…


#2

I agree with @robert_davies about investing in companies with strong cash flows and low debt in a deflationary period. There is just no sign of inflation on the horizon. Aren’t these the types of companies James Henderson invests in via Lowland, Henderson Opportunities and Law Debenture.

Not so sure you can say QE hasn’t worked though @robert_davies, maybe more accurate to say that it hasn’t worked as well as intended but it has staved off a 1929 style economic depression.


#3

The danger is that it has just delayed the inevitable. Has a property loan from a bank been rescued just because property values have been inflated by QE?