Brace for a Market Crash With These 3 (Surprising) New Inflation Hedges

Inflation Hedge Overview - Inflation hedges protect against currency devaluation due to rising prices, involving investments in assets expected to maintain or increase value [1] - Inflation affects purchasing power, prompting individuals to seek earnings and investments that outpace inflation [1] Traditional Inflation Hedges - Gold has been a traditional inflation hedge since 1971, gaining popularity during economic downturns [3] - In 2024, inflation remains a concern, with investors turning to big tech stocks alongside gold as a hedge [3][4] - A Bloomberg survey indicated that 46% of respondents favored gold, while nearly a third chose tech giants like Nvidia, Amazon, and Meta as inflation hedges [3][4] Tech Stocks as Inflation Hedges - Nvidia's stock surged over 200% in 2024, exceeding $900 per share, driven by strong earnings from generative AI and H100 GPUs [5] - Tech companies like Nvidia and Apple have outperformed the S&P 500, with Nvidia's stock increasing six times during a previous inflation spike [4][5] Farmland Investment - Farmland has historically been used as an inflation hedge, with U.S. farmland properties held by pension funds and tax-exempt vehicles valued at $16.2 billion in 2023 [6][7] - Farmland correlates strongly with inflation indices and has shown resilience, averaging an 11% annual return from 1992 to 2020 [7] - The scarcity of farmland, with over 11 million acres lost in 20 years, contributes to its value preservation during inflation [7] Chicken Wing Business Opportunity - Rising demand for chicken products is noted as consumers shift from beef to more affordable chicken options, benefiting companies like Tyson Foods and Pilgrim's Pride [8][9] - Retail sales of U.S. chicken products rose by 3% for the year ending April 21, while beef and pork sales declined [8] - Tyson's CEO highlighted strong chicken demand amid rising livestock costs, with ground beef prices surging approximately 12% year-over-year [9]