One of the best ways to fight inflation is just to follow the trend.
That’s the conclusion of a research paper written by researchers at hedge fund giant Man Group led by Henry Neville, as well as famed Duke University finance professor Campbell Harvey. Man Group EMG, it should be noted, makes its money from managing trend-following funds.
The paper was released in May but cited in a blog post by Kevin Muir, who authors the Macro Tourist blog.
The best performing asset class during eight U.S. inflationary regimes was energy commodities — the Arab oil embargo period makes an outsize impact — but from there, trend strategies produced gains of up to 25% a year…read more.