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R
All this talk about inflation. What can an average person like me do about it?
Other than commodities like gold or gold miners that I can get via ETF or cryptos via exchanges and wallets, what else? What else can provide that protection? How would you go about implementing?
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J
TIPS are one option - Treasury Inflation Protection Securities, which are US treasury bonds indexed for inflation so there's almost no inflation risk as long as your personal rate of inflation is close to the CPI rate. There are 3 low-cost ETFs all at 0.05% fee: SCHP (Schwab), VTIP (Vanguard), STIP (iShares). TIPS are subject to price fluctuations, so be sure you do some research.
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R
Stay invested in solid companies or equity funds that hold quality companies (positive cash flow is king!). Investing in specific sectors like energy may fare well during inflationary periods. You can add these into your portfolio as a tactical (or small) position.
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One idea that hasn't been mentioned yet is to invest in international companies that don't do much business in the US. This makes even more sense if you think we'll be facing periods of high inflation in the US, and other regions will be more resistant. Of course, this is a hedge strategy, so I wouldn't put all my eggs in this basket (plus stocks are risky!).
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S
I wouldn't make any wholesale changes and especially after JP's stance today that higher bond yields reflected economic optimism, not inflation fears. I think the key is to keep your portfolio diversified.
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