Inflation and Hedging

February 6, 2022
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Finance

Prelude

Like the previous post, this presentation was done for Texas UCF. Texas UCF stands for Texas Undergraduate Computational Finance.

Website: texasucf.org

Contents

Link: https://drive.google.com/file/d/1_urOeMCzZ5ZMmcgGN59NzFXY6oI4iePj/view?usp=sharing

Above is the link to the presentation. All of the content is on there, and this post will just be a short summary.

Intro

Richard Cantillon postulated that inflation benefits those closest to the money. The creation of money. Hence, governments make inflation.

As normal people are away from the creation of money, we need to invest in various assets or implement strategies as a hedge to protect our purchasing power.

Hence, we analyzed and created strategies using the following asset classes:

  1. Bonds/TIPS
  2. Gold
  3. Real Estate
  4. Commodities
  5. Crypto
  6. Kalshi Contracts
  7. SPY