It ‘s hard to avoid the inflation predictions that saturate the media. Of course, retirees have reason to be concerned if they want to preserve their purchasing power over their remaining lifetime.
But, Wither Inflation? Who knows if inflation will rear its ugly head? That will depend on future events and decisions made by the Federal Reserve and Treasury as well as world market forces.
We know that over the long haul stocks have been an extraordinarily effective inflation hedge. Businesses have been able to adjust to inflation, pass on price increases and protect their bottom line. So, the value of their stocks has outperformed inflation by a healthy margin.
But, because of all the concern and conversations, investors are busily scouring for additional inflation protection. Today’s Wall Street Journal article, “Inflation Protection: No Guarantees” does a great job of outlining the pros and cons of both the traditional and new fangled inflation protection strategies.