| Hi Taylor:
Any investments I can make that will stand up well against inflation?
I feel like the dollar has to weaken soon and I'm wondering how I
can protect myself. - Jeremy
Hi Jeremy: There are a few good options for investors with
inflation in their minds, and now is a great time to be looking into
these investments. Even better news, most of these options are great
additions to your portfolio in times of both high and low inflation..
estate. Historically, real estate makes its biggest gains
when inflation goes up. This happens for a handful of reasons,
including rising rent prices driving more people toward ownership.
If you have the capital to buy a second property, this is a great
option for you. If that's outside the scope, you can look into
REITs (Real Estate Investment Trusts) as a way to take advantage
of the security of real estate without taking on sole ownership.
2. Stocks. Inflation can cause a mess of problems, but do
you think Apple, Amazon, or Microsoft will struggle because the
inflation rate goes up a point? Those shares may continue to rise
in value, whereas the bag of money you have buried in the backyard
will take a much bigger hit. High inflation makes growth stocks
a little less appealing-don't go nuts on buying shares of startup
companies with big dreams and small reserves. Nevertheless, the
stock market is generally a good place to hold your assets when
guarding against inflation.
3. Commodities. Just like the companies I mentioned above,
the products we need in our day-to-day lives aren't going to let
inflation get them down. I've always promoted timber and energy
investing, and now might be an excellent opportunity to buy into
those industries. You can either look to individual stocks or
ETFs focused on the sectors you want to target. You can also consider
precious metals, which I'm sure you've already thought about if
you're looking for ways to escape inflation. A lot of people get
excited about gold during these times, and with good reason; the
price has consistently gone up and always manages to weather inflation
storms. Silver is another strong option, and you can decide between
actually buying the metal itself, buying these commodities in
stock form, or investing in the companies that mine the physical
| It's a pretty
safe bet that an inflation hike is looming somewhere on the horizon,
so these are good questions to be asking. Hopefully one of the above
options works for you, and I'll be interested to hear what you end
up doing. Thanks for writing in!
Information presented is for educational purposes only and is not
an offer or solicitation for the sale or purchase of any specific
securities, investments, or investment strategies. Investments involve
risk and, unless otherwise stated, are not guaranteed. Be sure to
first consult with a qualified financial adviser and/or tax professional
before implementing any strategy discussed herein. To submit a question
to be answered in this column, please send it via email to Question@GoFarWithKovar.com,
or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.