I renewed my covered calls on FXA and FXC; I believe the Australian and Canadian currencies provide additional hedges against US dollar hyperinflation. I have been encouraged by a steady stream of news items from those two countries that indicate a disinclination to pursue extraordinary monetary stimulus.
I am still long a put position against FXE; I remain pessimistic on the euro's long-term survival prospects.
I continue to watch other potential inflation hedges with fascination. I track timber REITs, public storage REITs, pipeline operators, and stocks in the mining and energy sectors. They are all at incredibly high valuations. I also occasionally check valuations of select stocks in my old favorite sectors - defense, logistics, and finance. I don't see a single stock in any of those sectors that I would buy right now.
The Fed's perverse monetary policy has inflated the value of everything under the sun. Masking the true cost of capital does a fundamental disservice to investors who seek value. My own entry point is far below where US stock markets think equities are valued. I am not throwing away my money. Sit back and admire my genius, because that's all you can do with what I say.
Nota bene: I've said it before, and I'll say it again. None of this discussion constitutes personal financial advice. I do not ever make securities recommendations to anyone; not on this blog, or in person. or any other way. I declined to renew my securities licenses in 2006 after I was terminated as a financial adviser for failing to acquire clients.