Buy Both U.S. And Foreign Stocks For Inflation Protection
What’s the best way for investors to protect themselves against inflation fears?
Inflation is always looming around the corner and can be the death of a portfolio! One of the best ways I have seen investors fight this portfolio risk is by holding both domestic and international equities. The key for every investor is balancing their equity risk-tolerance versus what is needed to keep up with inflation.
If you are ever tempted to stuff all your money under a mattress, pull out the latest graph showing the growth of $1 in equities/bonds/inflation, since 1925. That should change your mind in a heartbeat.
