economy
These inflation-protected plays can help investors manage the impact of higher prices
Rising inflation can corrode near-retirees' purchasing power, but there are a few ways to address the problem in your portfolio.
TL;DR
- War in Iran has led to surging oil prices, increasing fears of higher inflation.
- Rising fuel costs, higher energy bills, and food insecurity are potential consequences of the ongoing conflict.
- Inflation is a particular concern for investors nearing retirement, as it erodes purchasing power.
- Inflation-linked bonds, such as Treasury Inflation-Protected Securities (TIPS), offer a way to protect principal against inflation.
- Commodities, including oil and natural gas, have seen price increases, leading to inflows in commodity ETFs.
- For investors with long time horizons, stocks are generally considered a good asset class to hold in an inflationary environment.
- The choice of investment strategy depends on an investor's time horizon and risk appetite.