Four Inflation-Proof Investments
08:49 Share

Money rehabs you get IT when you're trying to have at all. You end up doing a lot of juggling, have to baLance your work, your friends and everything in between. So when IT comes to your finances, the last you need is more juggling that where bank of america, stepson with bank of america, you can manage your banking, borrowing and even resting all in one place.

Their digital tools bring everything together under one roof, giving you a clear view of your finances whenever you need IT. Plus, with bank of america's wealth of expert guidance available at any time, you can feel confident that your money is working as hard as you do. So why over a complicate your money, keep IT simbo with bank of america, your one stop shop for everything you need today.

And the goals are working toward tomorrow. To get started, visit B A, A dot coma flash, new process media. That's B O F A dot coma flash N E W P R O S media, B V A outcomes ash, new process media.

I'm to call lap in the only financial expert. You don't need a dictionary to understand. It's time for some money. We have.

Well, IT looks like we're not out of the inflation words just yet. If you are wondering why, please go back and listen to my eyes ode on trumps plan to impact inflation and interest rates i've linked to in the show notes in that episode. I give me four reasons why we may see inflation rise at the beginning of the year.

And I know this might feel like bomber news. We think of inflation as a force that tends to eat away at our network, but we can actually use inflation to grow our wealth in four ways. Today, i'm going to tell you how, but before we get there, let three have what inflation does to different types of investments.

Let's go with stocks. The stock market can be a mixed bag in inflationary times. Companies with strong pricing power, like consumer stables, for example, which are things like household goods and food, tend to perform Better during inflationary times, but high growth companies often take a hit because rising interest rates make future earnings less able is really no blink at rule across the board.

For stocks, it's pretty industry dependent. Traditional bonds are more straightforward, inflation or roads, the value of fixed income returns, so traditional bonds tend to under perform and inflationary environment, but then there are the hedgers gold has long been considered a hedges against inflation, which I won't get to in just a sec. The more dubious case studies are real estate and crypto o.

Property values and rental income often keep pace with or even outpace inflation, so in some cases, real state can exist as an inflation hedge, although that is not always the case, and the realistic market can boom or pop due to a bunch of other factors beyond inflation. On the even more volatile we have corruptio currency gypo grows a love to argue that the legacy coins like bitcoin and a theory um can act as a hedge against inflation due to their limited supply. At the time of recording this bitcoin is over ninety one thousand dollars a pop, which is a huge win for the crudo.

I will give them that. But let's not forget the fifty two week low for crypto o is less than half of that at thirty five thousand six hundred ish. Again, group dou is super volatile and it's not really a hedge against anything historically.

IT hasn't been a hedge against inflation or the dollar, and IT hasn't really been a store of value either. IT moves more like game. Stop, stop.

Its value reflects the value that people think or sometimes want you to have. So what are actually good hedgers against inflation? Here are my top four.

Never one serious. I bons. Yes, yes. A long time listeners know that I was obsessed with this one inflation to nine percent a few years ago.

But these bombs are my favorite for a reason. They are time to inflation IT and keep up with rising Prices, which means your returns go up even when inflation has. They're currently learning about three point one percent. But if inflation rises, so do I bon yields ivans adjust twice a year, so they'll adapt. If inflation picks up, you can only buy serious I bons on the treasury direct document website, much to my dismay, because treasury direct is not my most favorite interface, but IT is worth IT for an inflation adjusted yield number two tips or treasury inflation protected securities tips, or a type of bond issue by the federal government with a fixed interest rate and principal that varies with inflation.

So in other words, tips are really similar to eye bons, and that tips are also inflation adjusted, but instead of interest strates adJusting with inflation with tips, the principle of the bond adjust for inflation tips are available on treasure direct, god like eyes bonds, but unlike eyebrows, you can also find IT tips on some brokers, es or secondary markets. So if you're interested in seeing what options are out there right now, I would start with seeing what your broken offers. Number three, short term securities treasury bills, also known as tea bills, which are federal bonds that mature in less than a year, and short term certificates of deposit, also known as cds, are safe short term ways to earn interest and serve the value of your money.

Money in the bank is worth a less after inflation. Using short term security can help you earn a high enough interest rate. To counteract that, t bills are back to by the U.

S. government. They're not like other security. You promised a set amount that ends in a zero.

So IT, for example, if your tea bill has a face value of a hundred box, you'll pay twenty five dollars and sixty cents at an interest rate of four point three percent for one year. Then after that year, you'll get one hundred bucks back again. You can buy them from treasury direct up gov, or from your broken account.

Cities are like loans that you make to the bank. You hand over casual set amount of time. They return IT with interest at the end of the term.

A lot of banks offer them directly. Or you can purchase a broker city from you, gusting your broken age, never for gold. I told you with circle back to this one.

Gold and inflation are a classic pair. When inflation rises, gold Prices often follow, making IT a handy hedge. Do you invest in gold? You can, yes, by actual gold costco cells bars, true story.

But the thing about own and gold is that you have to store IT either in a safe spot in your house, which is inconvenient and annoying when you move, or at the bank, or another secure storage option, which will come to storage fees, if that is so not your jam. You can also invest in companies that mine gold, like new mont corp, which is, take your symbol E. M, that's the world's the largest gold mining company.

Or you can buy a gold etf that tracks old places like the most popular one is a ticker simple gl. Simply step like these can keep your money y's values steady, even if Price start climbing. The key is to stay pro active.

Small moves now can help you avoid IT scrambled ling later. Remember, inflation is only the enemy if we're not ready for IT with these steps your arty had of the curve. For today's step, you can take straight to the bank because inflation may drive Prices to rise at the top of the year.

Black friday this year is a good time, not just to get your shopping done, but also to make big purchases for yourself. If truth does get his way, with terrace products from china will go up. Obviously, americans, by a lot of chinese manufactured goods, especially in the tech space.

So if you decide you need to make a big birches like a laptop, you can also see what benefits your credit card offers. Many create card companies will automatically extend the warranty ty on items that you are just on their card. For example, master card will automatically double the manufacturer warranty to two years.

Money we have is a production of money news network. I'm your host nickle lap in money rehabs executive producer is more than the void. Our researcher is Emily homes. Do you need some money rehab? And let's be honest, we all do.

So email is your money questions, money rehab at money news network to come to potentially have your questions answered on the show or even have a one on one intervention with me and follow us on instagram at money news and tiktok at money news network for exclusive video content. And lately, thank you so seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.