Beating Inflation

Every piece of inflation news has the power to terrify and send investors searching for ways to protect wealth.  Bonds look like a poor prospect.  As the Federal Reserve (Fed) raises interest rates, bonds will lose value simply as a matter or arithmetic.  (For an explanation see this post.)  Even if the Fed were to cease its counter-inflationary effort, …

The Inflation Threat

All inflation indicators have ticked up recently.  The cost of living is rising faster than we have seen for at least ten years.  The authorities in Washington – most notably Federal Reserve Board (Fed) Chairman Jerome Powell and Treasury Secretary Janet Yellen – have downplayed concerns over this news, saying the price pressure is “transitory.”  They may be …