Commodities and gold have the highest inflation beta in regressions on monthly data as shown above – and appear to be the only two assets whose real returns in periods of rising inflation were higher than over the full period. Conversely, 10Y treasuries have the most negative inflation beta. For investors looking to introduce assets to their portfolio that will do well when inflation is rising – and putting pressure on the stocks and bonds that make up most investors’ portfolios – gold and commodities seem to offer the most promise.
The central bank now owns about 7% of all the shares traded on Tokyo Stock Exchange’s first section
Could self-deception ever lead to good outcomes? Again, the moment I asked this question, I began to see plenty of examples. I realized that one reason people cling to false beliefs is because self-deception can sometimes be functional—it enables us to accomplish useful social, psychological, or biological goals. Holding false beliefs is not always the mark of idiocy, pathology, or villainy.