Witness higher prices everywhere: at the grocery for meat and coffee, at the gasoline pump, rents, even health care.
Invest in companies that benefit from rising prices, such as exchange-traded funds
Inflation is the enemy of those living on fixed incomes, as it erodes the value of those payments. So another option is buying TIPS, or
If you buy TIPS or precious metals for your portfolio, remember it's important to buy TIPS in a tax-exempt retirement account. TIPS principal is adjusted by changes in the Consumer Price Index. TIPS pay interest every six months and are issued with maturities of five, 10, and 30 years.
Precious metals such as gold, silver, and platinum may be recovering into the second leg of a bull market, according to one investor who believes these are excellent hedges against inflation.
"Many Americans now know that their costs of living are rising and their real incomes have not kept pace," wrote the
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