If rising prices have you worried, one way of insulating your nest egg comes straight from the government: Series I savings bonds. Right now they’re paying 7.12%.
Inflation readings reached four-decade highs of 7.5%, the Bureau of Labor Statistics reported on Feb. 10, and the potential of further erosion of real purchasing power has everyday consumers and investors worried. Over 70% of participants in a recent USA Today/Suffolk University study indicated that inflation is their main economic concern, versus just 24% who cited jobs. Many investors are asking themselves how they might insulate their portfolios.
Gold, commodities, Treasury inflation-protected securities (TIPS) or maybe bitcoin come to mind when thinking of inflation hedges. While all tend to work to some extent, each has its own quirks, and none cleanly moves in lockstep with inflation.
Adam Grealish | Kipinger