If the economy really starts taking off again and credit starts easing, I'm afraid that inflation could take off along with it. Where should I invest if I'm worried about inflation and how much should I invest?
1
|
Short term (12 month or less) certificates of deposit might be a good way. As inflation increases you can roll the money over into new CDs when they renew and you should be paid a higher interest rate. |
||
|
|
|
0
|
One way I've found is investing in TIPS (Treasury Inflation Protected Securities) but if inflation doesn't occur then the return would be flat or even decline. |
||
|
|
|
0
|
There are inflation-adjustable variable annuities that will pay you more during periods of higher inflation. One drawback is they pay less during periods of low (or no) inflation. |
|||
|
|
