Buy Both U.S. And Foreign Stocks For Inflation Protection

November 15, 2013
by Michelle Perry Higgins

Start Shopping for Long-Term-Care Insurance at 45What’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.