Investors Betting on Inflation

Even as signs of deflation linger, some investors are moving to protect themselves against any surge in inflation.

To defend -and profit- from a big rise in inflation, investors have piled into gold or inflation-protected bonds. In November, investors put $2 billion into inflation-protected mutual funds and exchange-traded funds, according to Morningstar. Another $3.9 billion went into commodity funds and commodity exchange-traded funds, primarily gold funds. So far this year. those categories of funds have raked in $59 billion. In contrast, investors have pulled $52 billion from U.S. stock funds and U.S. stock-focused ETFs.

The next chapter in this story will be written later this week, when producer-price index (Tuesday) and consumer-price index (Wednesday) numbers are due.

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