Almost no one is worried about inflation. You should be.
Too often savers and investors fight the last war when they should be girding for the next one. Just a year ago, people were afraid to buy residential real estate. Homeowners had lost a collective $7 trillion in equity following the Great Recession. Buy a house? You’ve got to be nuts.
But they were fighting the last war. Today, home prices are up double digits and rising mortgage rates have further put homes out of reach for folks who could have been buyers a year ago, when the war on real estate values was already over. What should we have been preparing for? One example: gold prices are down 17%—and signs of over valuation were in plain view last year.
This isn’t to say that we should all have a crystal ball. Trend reversals are easy to spot only in hindsight. But failing to account for their inevitability can be a costly mistake—one that a lot of pre-retirees are making right now as it relates to inflation.
Read more:Â http://business.time.com/2013/09/06/why-you-need-inflation-protection-now/#ixzz2e7v9QMSj
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