Pretty much everyone but U.S. Federal Reserve Chairman Ben S. Bernanke sees that inflation is returning: After all, even Bernanke's favorite inflation measure, the Personal Consumption Expenditure (PCE) deflator, was up 0.4% in February - which hints at an annualized inflation rate of almost 5%.
What folks don't see, however, is just how bad inflation will get.
To learn how to invest in the face of spiking inflation, please read on...
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Article Index
Inflation Fears: A Sanguine Fed is Underestimating the Escalating Threat
Bond Market Outlook: Four Ways to Hedge the Looming Fixed-Income Fiasco
Many investors are afraid of inflation because they understand the run-up in prices will take a big bite out of their wallets - and their buying power.
While that's a valid concern, I'm much more worried about one of the other possible fallout effects of the expected inflationary surge - the potential for the worst global bond rout in nearly 20 years.
But here's the thing: Even if that happens, it doesn't have to hurt. In fact, you can turn it into such a big profit that even the inflationary pressures will seem like a minor nuisance.
While that's a valid concern, I'm much more worried about one of the other possible fallout effects of the expected inflationary surge - the potential for the worst global bond rout in nearly 20 years.
But here's the thing: Even if that happens, it doesn't have to hurt. In fact, you can turn it into such a big profit that even the inflationary pressures will seem like a minor nuisance.