Inflation Hedge please, represent, following, particular, benefit

jcole21

which of the following commodities represent a better inflation hedge?

A. Energy
B. Livestock
C. Industrial Metal

please be sure to explain why you chose a particular answer for my benefit .

ll11

Apologies, storable commodities directly linked to the level of economic activity provide a hedge against unexpected inflation

thommo77

A, energy has the highest sensitivity. Industrial metals are second.

former

a good one

it is said that agricultural and not storable commodities do not provide a good inflation hedge, that correlation is even negative with inflation

Thus, it should be C

BUT I remember something about energy and it has an even stronger correlation,

so it is A

(V5, p 57)

jmh530

soddy1979 Wrote:
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> Apologies, storable commodities directly linked to
> the level of economic activity provide a hedge
> against unexpected inflation

Exactly! If the storable commodities represent good hedge against the inflation, then why not industrial metal? As Paraguay hinted, the answer can be either one of them. Is there anything in the question that we should look for to know the exact answer for this type of questions where more than one can be an answer?

oneboy

Energy has the highest correlation. The book discussed the GSCI if memory serves me correct.

It's a crapshoot, but you are going to get some wrong, I wouldn't worry too much.

mik82

A

NO EXCUSES

Valores

A 0.46 correlation