Avoid These 2 Stocks And Buy This 11% Yielding World-Beater Instead
By: Dividend Sensei
Inflation may have peaked, but PIMCO and other analysts warn that inflation could remain high for many years, potentially causing bonds to suffer.
If a 60/40 stops working for several years, hedging your portfolio is a prudent option.
Gold (GLD) and commodities (DBC) are the historical stagflation hedges, but gold is down 46% since 1980, and commodities have delivered -1% real returns for the last 100 years.
This 11% yielding stagflation hedge is the Vanguard of hedge fund ETFs, delivering better returns than 85% of peers, with lower costs and exceptional stagflation hedging power over the last 3 years.
It’s beaten its peers by 5% annually, thanks to using the consensus of the top 20 hedge funds in the world, and is up 24% YTD.
It could deliver 9% to 10% long-term returns. As part of a diversified and prudently risk-managed balanced portfolio, it can boost long-term returns, increase yield significantly, and reduce peak market crashes by 66%.
For anyone comfortable with its risk profile, this 11% yielding world-beater is the best stagflation-fighting stock I’ve found so far.
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