Personal finance: Inflation impact can be reduced
News from Fresno Bee:

Question: Inflation has been quite low the past several years.

Many do not recall the inflation rate of 10%-plus during the Nixon/Ford/Carter administrations.

If I believe inflation will rise significantly and persist in the future, where should I invest my cash: CDs, bonds, equities, natural resources/commodities, real estate? Or are there other types of investment vehicles?


Answer: Inflation is the hidden evil behind eroded returns, diminished spending power and frustration by those on fixed incomes.

Given the dollar’s declining value, low-interest-rate monetary policy and government spending, there is no doubt inflation is coming. The question is when.

The unfortunate truth is there are few strategies to avoid inflation altogether. An investor, however, can reduce the impact of inflation to his or her portfolio.

Here are a few ideas:

— Real estate securities: Real estate securities can hedge high inflation through increases in rental prices of properties.

Long-term leases in sectors like office and retail may have the ability to increase rents with changes in the consumer price index.

Properties with short-term leases, like hotels and apartments, can boost rents as leases expire.</…………… continues on Fresno Bee

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