Many people today are concerned with the potential impact to their wealth of long-term inflation, mass inflation, and hyper inflation. Few have a plan to deal with it.
Today, I present one strategy that could be implemented which would help to protect your standard of living. It’s called The Alpha Strategy.
The Alpha Strategy is a book written by John Pugsley in about 1980. Concerned about the long-term inflation he predicted for the duration of the 1980s (he was wrong), he published the book to help people deal with it. It was on the New York Times bestseller list for 9 weeks in 1981.
I believe The Alpha Strategy is an extremely useful mental model. But it’s also fraught with challenges in the implementation phase. I prefer to keep it as a mental model and apply it in the areas I can figure out rather than use it as some sort of slavish mandate.
- Bureau of Labor Statistics historical rates of inflation
- Gary North’s article: Inflation, Mass Inflation, Hyperinflation and Deflation
- PDF of The Alpha Strategy by John Pugsley