Save yourself from any flation…
Although a few months old, an article I just read offers some interesting tips to protect yourself against either inflation deflation. Now it's true that this was written a few months ago, but their points are still valid:
Basically, the market hasn't recovered from the financial crisis - we've seen in the news this past week that unemployment is a major concern, and that housing sales have dropped since the federal tax credit expired. As people continue to avoid spending, we may see prices drop, which would lead to a deflation of the American dollar. On the other hand,other's say that recent government spending (and a $13 trillion debt!) may cause just the opposite - a high inflation rate.
So the question is, how to avoid trouble in either circumstance. Their suggestions are to invest in:
- Stocks with pricing power
- Cash-rich blue chips
- Emerging-markets stocks
- Inflation-indexed bonds
- Foreign bonds
- And commodities and real estate
Check out the article for a more details on each (same link as above).
