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Inevitable Inflation

Tuesday, 8 May 2012 | 6:33 PM ET
Fast Money Portfolio
Fast Money Portfolio

Few investors may be worried about inflation now, but ultimately it’s inevitable.

So says, John Brynjolfsson, managing director of the global hedge fund Armored Wolf.

Brynjolfsson knows a thing or two about inflation, he also spent 19 years at PIMCO directing their inflation-protected assets.

Ahead of the broadcast, Brynjolfsson recommended the following investment tools as a way to diversify the portfolio against inflation.

FM Portfolio: Inflation-Proof Investing
John Brynjolfsson, Armored Wolf, discusses the best investment strategies to protect your portfolio against rising rates and inflation risk.

They are:
- Commodities
- Emerging Markets
- Inflation-linked bonds (TIPS)

Although Brynjolfsson concedes in the near-term the environment is deflationary, he thinks its just a matter of time before inflation rears its ugly head.

That's because in an effort to drive the global economy out of its malaise, “The Fed, the ECB, the Bank Of Japan and other central banks are injecting as much money in the system as possible,” he says.

Although they're trying to drive wages, stock prices and housing prices to stimulate growth, at the end of the day – they’re driving inflation.



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Trader disclosure: On May 8, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karen Finerman is long AAPL; Karen Finerman is short AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long RIMM; Karen Finerman is long HPQ; Karen Finerman is long AVP; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDX; Brian Kelly is long WFC; Brian Kelly is long T; Brian Kelly is long VZ; Brian Kelly is long ADM; Brian Kelly is long USG; Brian Kelly is short KRONE; Brian Kelly is short FTSE 100 Futures; Dan Nathan is long jan 450 puts AAPL; Dan Nathan is long BAC MAY 7 PUTS; Dan Nathan is long C JULY 32/27 PUT SPREADS; Dan Nathan is long MS MAY 16/15/12 PUT FLY; Dan Nathan is long IBM JULY 200/185 PUT SPREADS; Dan Nathan is long RIM JAN 20/25 CALL SPREAD; Stephen Weiss is short MT; Stephen Weiss is short CMI; Stephen Weiss is short JCP; Stephen Weiss is short NFLX; Stephen Weiss is long AIG; Stephen Weiss is long JPM; Stephen Weiss is long QCOM

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