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How to Profit From Deflation


How to Profit From Deflation
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By: Martin Hutchinson, Global Markets Analyst
A sharp decline in stock prices has stunned investors in the first weeks of 2016. This rapid decline follows a prolonged and deep decline in commodity prices.
Monetary authorities across the globe are increasingly concerned that headline inflation is close to zero and drifting lower. It appears that we may be in for a bout of deflation, especially if global economies turn down again.
If that happens, income investors will have only one safe haven: prime corporate bonds.
Deflation, Dead Ahead
The glut of money in the economy is one of the primary causes of this deflation, both in the United States and worldwide. ....

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