Unleveraged stuff like bond and money market funds not belonging to banks in the sh*tter (or ordinary people owning bonds). It's not like people will be withdrawing money from those to invest in equites or whatever right now. Peak oil is not an energy crisis. It is a liquid fuel crisis.
Because least-indebted global fortune 500 companies with pricing power will be able to inflate their revenue as fast as, or faster than, general inflation. Of course, there may still be a temporary downturn in the near term, but when you're just price-averaging your rebalancing from bonds to equity, now is still a good moment to start.
I'd be wary of bonds, of all flavors, mortgage, corporate, sovereign, municipals: basis risk is demonstrably terrible. spreads might swing in any direction any time because of a deleveraging of some obscure player anywhere in the world. And remember: the market can remain irrational longer than you can stay solvent. Pierre
The other ones - relatively new - are infrastructure and stuff like ETF's, but even there some of the players have over-done the gearing... "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
I might have completely misunderstood what we are talking about here though.
By the way, why wouldn't TIPS give a real return against inflation? They are linked to the CPI, so that's exactly what they are supposed to do.
Or is the "core inflation" ghost around? Peak oil is not an energy crisis. It is a liquid fuel crisis.
And remember: the market can remain irrational longer than you can stay solvent.
