Is it Time to Prepare for Inflation?

By: ETFdb
While U.S. inflation remains at historic lows, it has ticked up recently, leaving many investors fearing that it’s time to prepare portfolios for rising prices. Some fears are primal. For investors, particularly those old enough to remember “The Great Inflation” of the 1970s and early 1980s, inflation is one of them. This fear is reinforced by the widespread perception among market watchers that six years of extraordinary monetary stimulus will inevitably lead to inflation. As I’ve expressed in the past, given the United States’ unresolved fiscal issues, still excessive non-financial debt, and uncertain path toward monetary normalization, fearing inflation isn’t irrational. However, as of today, it may still be premature. Recent readings have shown that inflation has stabilized, which is a good thing, but signs of an imminent acceleration in inflation are still scant. In other words, it’s probably too early to restructure a portfolio around a big shift in […] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
While U.S. inflation remains at historic lows, it has ticked up recently, leaving many investors fearing that it’s time to prepare portfolios for rising prices. Some fears are primal. For investors, particularly those old enough to remember “The Great Inflation” of the 1970s and early 1980s, inflation is one of them. This fear is reinforced by the widespread perception among market watchers that six years of extraordinary monetary stimulus will inevitably lead to inflation. As I’ve expressed in the past, given the United States’ unresolved fiscal issues, still excessive non-financial debt, and uncertain path toward monetary normalization, fearing inflation isn’t irrational. However, as of today, it may still be premature. Recent readings have shown that inflation has stabilized, which is a good thing, but signs of an imminent acceleration in inflation are still scant. In other words, it’s probably too early to restructure a portfolio around a big shift in […]

Click here to read the original article on ETFdb.com.

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