How To Fight Inflation
Written by Eduardo Pinheiro   
Sunday, 24 April 2011 07:59

The dollar is turning into dust. Gold and silver prices have skyrocketed (and may even go further). Gas prices are outrageous. And yet, "official" inflation is said to be low, but the government keeps printing money and running ever so increasing deficits.

What's an investor to do?

Well, there are a few ways with varying degrees of safety and efficiency to hedge against inflation. They all  fall into three broad investment groups:

  • Cash-flow positive assets
  • Limited supply
  • Hybrid/Mixed

Cash-flow positive assets include business interests (stocks, private investments), rents, royalties, savings and bonds. Though, not all of these are good inflation hedges. Limited supply investments are those that depend on the scarcity of the investment, and include precious metals (gold, silver, copper, bronze), oil, natural gas and fine arts. Hybrids/Mixed are everything else and typically include derivatives or some sort, futures, TIPS, etc. Again, not all are good inflation hedges.

My favorites to fight inflation and to grow wealth are by far business interests and real estate.

Read more about it in my new article on EPIC INVESTOR.


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Last Updated on Sunday, 24 April 2011 08:12
 

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