A stagflation survival guide

On the FT op-ed page today, I write:

It is true that cash has recently performed better than property and better than shares, with the FTSE 100 down about 15 per cent over the past year. Still, the savvy investor should be looking for inflation-beating returns. It is possible. According to the UK Office for National Statistics, the price of spirits is up nearly 10 per cent, milk, cheese and eggs are up more than 15 per cent, and the price of edible oils and fats is up more than 20 per cent. Here, surely, are the new investment classes. Had you sold shares last summer and stocked up on Nido and Mazola, you could have beaten the stock market by up to a third.

Past performance is no guarantee of future performance, of course, so it would be rash to jump headlong into a portfolio that is short on equities and long on powdered milk. Still, an investment strategy that would also see you through the collapse of western civilisation has something going for it.

You can read the whole thing here.

Tim Harford’s blog

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Tim, also known as the Undercover Economist, writes about the economics of everyday life.