Inflation Trade

Inflation trades are for those investors who are in the game of trading inflation. Go figure.

Investors can try to predict and profit off of changing price levels caused by inflation. When inflation is on the uptick, investors can profit off of the eroding value, and can transition their investments into safe-from-inflation investments, like treasury inflation protected securities, or TIPS (yep, it’s even in the name).

For investors who can afford playing a risky game, making speculative trades with derivative securities at the right times can result in payoffs all thanks to inflation.

Remember: this strategy only works if prices actually go up in the future.