Pandemic Stimulus: How to Hedge Against Inflation in the Wake of $8 Trillion Stimulus
While the US is temporarily experiencing deflation during the pandemic, the more than $8 trillion in combined Congressional, Treasury, and Federal Reserve stimulus will inevitably lead to inflation in the long term. So how do you protect your portfolio against it?
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Real Estate & Other Investments that Hedge Against Inflation
With $8 trillion in combined government stimulus (and counting!), there's a lot of new money suddenly circulating around the US economy.
Granted, in the short term, the US faces a recession, which prevents inflation as consumers and companies alike spend less. Lower demand and spending prevent price hikes.
But as the US gradually claws its way out of recession, all that additional money supply will make itself known. Eventually, more money in circulation means that each dollar will be worth less.
How do you plan to protect your retirement and savings against inflation?
A few investments that hedge against inflation include:
- Rental properties
- Commodities
- Gold and other precious metals
- Growth-oriented stocks
- REITs
Read up on how to hedge against inflation in your own portfolio while the US economy remains in recession, and before the recovery starts inducing inflation.
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