lostdragonballs asked:
Im looking for investments that will increase during an inflationary period. Im not looking for arguments or opinions on if/when its going to happen just investments strategies that have a good potential to increase during inflationary periods.
Im looking for investments that will increase during an inflationary period. Im not looking for arguments or opinions on if/when its going to happen just investments strategies that have a good potential to increase during inflationary periods.
Thanks,
Paul
REIT is the only thing I can remotely invest in in my company 401k plan so I think this is my best option.
Property. I would buy just when the upturn of the Economy begins. You’ll find that in a Boom, property prices will just go through the roof.
Property as it will always be in a limited supply. Gold is voodoo economics. I don’t recommend REITs (Real Estate Investment Trusts) as sold in mutual funds. I mean real property with land and/or buildings in your name in an area that is growing.
the safest and easiest will be when interest rates shoot thru the ceiling – then put in 1/3 and 1/3 and 1/3 to lock in high rates.
if you have played the market you know easy come easy go – an FDIC account locked in for a yr – two yrs – five yrs or 10 yields a fair amount of income.
Torches and pitchforks…
The only way to defeat inflation is to BUY ASSETS. Real Estate, Gold, Jewelry, etc.. Anything that doesn’t lose value will also adjust for inflation as prices rise.
Here is a tip:
Inflation = Buy Assets for Protection
Deflation = Cash is King, Assets are death.
TIPS that is US Treasury bonds that pays relatively low interest but the principle is adjusted for inflation, You can buy them directly or in an ETF. If you are willing to take a little more risk you could buy commodity ETF’s or one based on energy/oil prices.
Edit. Real estate works for the long term, but when inflation is high so are interest rates which depresses the real estate market until the inflationary period ends. Gold behaves in the opposite way and the price falls when the inflation does so you have to get the timing right
Short long term treasuries. Easiest way is to buy UltraShort 20+ Year Treasury ProShares (TBT)
Dirt. They aren’t making anymore of it and it only gets more expensive. (More and more people, less and less dirt to go around)