Inflation and Investments: How Inflation Impacts Properties, Bonds, Stocks, and Precious Metals – Epoch Times

…Before making financial decisions, it can be helpful to understand the relationship between inflation and different types of investments. Consider the following ways that inflation can impact properties, bonds, stocks, and precious metals as you evaluate your portfolio and its performance. …“Currently, a portfolio of just Treasury bonds and cash does not provide the required return to compensate for inflation,” Saunders says. The reason for this is two-fold. Firstly…. “Investors may be quick to buy TIPS (Treasury Inflation Protected Securities) if they fear inflation is going to increase,” Saunders says. As the name suggests, these investment vehicles are adjusted for inflation. That said,… The S&P 500, which began in 1920s, has averaged around a 10 percent return. “Since the average U.S. inflation rate is around 2.25 percent, you can see…. “If you’re looking to outpace inflation rates, it could be worth investing a portion of your savings in precious metals like gold or silver,”