What are the best investments for "stagflation"?

Question

What historically were the best investments during stagflation peroids?

Slow economic growth causes stock markets go down, so stocks and shares are presumably not a good bet, especially that they are still so high.

Returns from the low-yelding government bonds / money market investments do not even beat the rising inflation so cash is also not a good idea.

Because of the "credit crunch" overinflated property prices head down, so buying a house is probably not the best thing to do right now.

Finally commodities, such as gold, oil or wheat are at their historical highest peaks so it would be rather risky to buy now when they are so high (old investment advise - buy low, sell high).

So what do you think are the best investment for the times of global "stagflation"?

Answer 1

Packaged Food Companies:

General Mills (GIS)
Kellogg (K)
Kraft (KFT)
Campbell Soup (CPB)
Sara Lee (SLE)
Con Agra (CAG)

These are staples in tough times. Everyone continues to eat food. With Stagflation, people will eat out less, and make meals at home more often.

These companies are great dividend paying stocks too. 2% - 3.2% each!

Answer 2

Even though gold is at an all time high, assuming no new deposits/reserves are found, then it can only grow in value.

It has many industrial uses as well as in jewellry.

In the long term (60 years plus) gold has never lost value.

On the other hand no fiat currency has ever stood the test of time.

Answer 3

Tho I don't believe in stagflation myself, I would want to be in hard assets. Maybe houses, land, gold, silver.
TIPS Treasury Inflation Protected securities might also be good.

Answer 4

I think a bottom up approach works best in any economic environment.

There will always be companies that find a way to grow whose stock will move up. There is no need to predict or anticipate - you just buy them when they break out of sound bases.