Investing to Hedge Inflation Risk
Inflation is still a major risk. Here are some investment ideas to hedge it.
High Rates are Good!
Yes, the prices of stocks and bonds are down YTD in 2022. By a lot. However, yields are also up, by a lot, more than offsetting the drop in value. The net effect is that expected annual income is currently higher than it was at year-end 2021 for both stocks and bonds! You will have more income in retirement, not less.
Traditional Medicare vs Medicare Advantage
The popularity of Medicare Advantage has grown so that now 50% of Medicare enrollees use it rather than traditional Medicare. Which one is right for you?
Eyes on the Prize
Investing is like a marathon. The key is not giving up.
Milton Friedman Was Right
We should not have been surprised by the past year’s rampant inflation in the wake of Covid-related blowout government spending and consequent increases in the money supply. Milton Friedman (1976 Economics Nobel Laureate) warned about this long ago.
Funding Your Retirement Liabilities
Interest rates are up, and asset prices are down. However, the present value of your future retirement liabilities (spending needs) is also down, probably down more than the value of your retirement nest egg. This means that in nearly all cases, retirement investors have better coverage of future retirement liabilities than they did on January 1!
Short-Term TIPS: The "Real" Risk-Free Asset
Short-term Treasury Inflation-Protected Securities (TIPS) are a safe-haven investment in this turbulent market. They have no credit risk, no inflation risk, and very little interest rate risk.
The Fed Stops Any Stock Market Advance
Fed tightening has put a stop to any stock market advance. Monetary policy is likely to determine stock prices for at least several more months. Watch carefully.
Should I Invest in Municipal Bonds?
Tax filing season often focuses minds on tax-efficient investing. Municipal bond funds may be one way to control taxes, but they are only attractive for high tax bracket investors. This article will tell you if they are right for you.
Steel Yourself for Inflation with VanEck Steel ETF (SLX)
VanEck Steel ETF (SLX) his historically done a good job of hedging inflation. Using factor analysis, we project a very high near-term return for this ETF based upon its value, momentum, quality, and sentiment characteristics.