Therefore the increasing inflationary expectations in the United States as well as in Europe is hardly surprising. So, the head of the Hamburg world economy Institute predicted a price inflation of 5% and more from 2011 already last year. It turns the investor so the question of how assets can be applied relatively inflation-safe. (A valuable related resource: American Tower Corporation). The regularly put forward pronouncement that protect assets from inflation, must be evaluated differently however. So, no clear correlation between high inflation and rising stock prices can be made from a historical perspective. Also the investment in raw materials has more often speculative character, because they occur in the early stages of inflationary sometimes even as price drivers are subject to at a later stage of but strong volatility.
Investments in these areas should be examined accordingly carefully. A hedging of the portfolio by adding real estate with good tenant structure in economically stable appears strategic Locations and regions. Closed-end real estate funds in the long term rent typically high-end to solvent tenants. In addition to the increase in the value of real estate in an inflationary environment the leases have often inflation adjustment clauses that produce higher yields over time”, explains the General Manager of AAD Fund discount GmbH, Dr. Jurgen Hilp. But other closed property investments can make inflation-secure facility.
This is particularly true if a part of the investment was provided by foreign capital is a long-term low credit interest rate basis. In the current environment it does regularly. This increases the margin between inflation due to rising revenues and borrowing costs for the benefit of the Fund and its investors in a future inflationary scenario. Of course, partial capital leveraged investments like any other entrepreneurial involvement are not entirely free of risks. In particular cyclical monetary investments must also at any drop in revenues the borrowing costs further use, which could affect the payouts to investors”, restricts Dr. Jurgen Hilp. About AAD Fund discount GmbH, the AAD Fund discount GmbH is an independent fund placement firm based in the university town of Marburg. It offers investors the opportunity to acquire more than 9,000 mutual funds and virtually all closed-end funds at discount rates without subscription fee.