Inflation became a hot topic often talked about in the Wall Street market after consumer price reports in May soared and the Fed’s June meeting to be held on Thursday morning.
However, it is not expected that there will be any change in interest rates from FMOC although investors are awaiting any comments on their plans in the future. Ahead of the FOMC meeting, several leading investors have come forward to share what they think is the best way to hedge against rising inflation.
Personally Boris Schlossberg, managing director of FX strategy at BK Asset Management thinks that gold is a significant option plus when interest rates are negative, however he is more inclined to silver and describes it as a much better bet. This is because there is a lot of industrial demand, especially in new solar and 5G technologies.
Schlossberg said the low cost of silver compared to gold could make it an attractive investment in the market. Thus it has a higher probability of soaring than gold.
On a different point of view, Craig Johnson technical market manager at Piper Sandler argues that rising oil prices and the significant impact on the energy industry could be one good option.
Finally, another way to consider is to invest in copper as it has a high correlation with a 10 -year break -even rate.
The market is now in focus ahead of the FOMC speech at 2am on Thursday.
