In February this year, we wrote that the sovereign debt crisis, pervasive in the developed world, was “certain to lead at some point to a prolonged period of inflation.” We are now in the early stages of that period and an acceleration of inflation is now virtually certain. Unless investors move aggressively to protect their wealth, they are likely to lose 50% or more of their wealth’s purchasing power in the coming years. Read the rest of this entry »
Archive for the ‘Hedging’ Category
Inflation might decimate your wealth
Posted by Alex Krainer on December 14, 2010
Posted in Economic imbalances, Hedging, Inflation, Money & investing, Politics, Risk management | 2 Comments »
Market risk, hedging & shareholder value
Posted by Alex Krainer on April 13, 2010
Strategic risk management is among the most powerful ways for companies to upgrade their competitive edge, boost profitability and enhance shareholder value. This is especially true for commodity-related industries where exposure to volatile prices of commodities, foreign currencies or interest rates represents some of the main sources of risk. However, such a business should not seek to eliminate the price risk as this would also eliminate one of the strongest drivers of profitability and value creation. Read the rest of this entry »
Posted in Hedging, Risk management | Leave a Comment »