Seven ETFs to Play Deflation
Kevin Grewal submits:
As deflationary concerns continue to make headlines among investors, dividend paying investments, interest-bearing investments and cash become more appealing.
Weak economic figures, a decline in money supply and fiscal tightening around the world are a few reasons why falling prices could be in the near future. Other factors that could lead to a drop in prices include tight credit markets, declines in consumer spending and high unemployment – all of which lead to a reduction in the demand for goods. Declines in the demand for goods eventually result in excess supply, which further leads to a decline in prices to bring supply and demand in equilibrium.
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