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President Donald Trump recently raised eyebrows after declaring, \u201cI love the inflation\u201d while discussing the latest inflation report (1) and the ongoing conflict involving Iran.<\/p>\n
Speaking to reporters, Trump suggested inflation would fall sharply once the conflict ends, arguing that U.S. actions have helped prevent a much larger spike in oil prices. He claimed the U.S. has been quietly removing millions of barrels of oil from the market and predicted inflation would \u201ccome down like a rock\u201d when the war is over.<\/p>\n
Top Picks <\/p>\n
The ultra-rich use these 5 real estate strategies to build wealth while they sleep \u2014 you can start with just $100<\/a><\/p>\n<\/li>\n The IRS usually taxes gold as a collectible \u2014 but this little-known strategy lets you hold physical bullion tax-free. Get your free guide<\/a> from Priority Gold<\/p>\n<\/li>\n Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake \u2014 here\u2019s how to fix it ASAP<\/a><\/p>\n<\/li>\n<\/ul>\n Whether that prediction proves accurate is still unclear. Even though inflation has cooled dramatically from its June 2022 peak of 9.1% (2), prices haven\u2019t returned to where they were before the pandemic. Since January 2020, consumer prices have risen by roughly 29%, according to Bureau of Labor Statistics data (3) \u2014 meaning Americans are on the hook to pay substantially more for many everyday necessities.<\/p>\n At 4.2% inflation (4) year over year, prices double roughly every 17 years.<\/p>\n That means a retiree living comfortably on $50,000 per year today could need nearly $100,000 annually by the mid-2040s just to maintain the same lifestyle if inflation remained at current levels.<\/p>\n While politicians continue to argue where the economy is headed next, many Americans face a more immediate question: How can they protect their purchasing power if the cost of living remains stubbornly high?<\/p>\n Fortunately, several asset classes have historically performed well during inflationary periods and may even help diversify your portfolio when prices rise.<\/p>\n Test your metal <\/p>\n Gold doesn\u2019t generate income like stocks or bonds, but that\u2019s never been its primary appeal. The metal has historically held its purchasing power over long periods.<\/p>\n Gold\u2019s reputation as an inflation hedge was forged during the 1970s \u2014 specifically after the Nixon shock of \u201871 (5) \u2014 when inflation surged into the double digits. Between 1971 and 1980, the price of gold climbed from roughly $35 an ounce to more than $800 (6) as investors sought protection from rising prices and economic uncertainty.<\/p>\n One way to invest in gold today that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold<\/a>.<\/p>\n Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold<\/a>, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty.<\/p>\n To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver<\/a> on qualifying purchases.<\/p>\n Read More: Thanks to Jeff Bezos, you can become a landlord for $100 \u2014 without the headache of actually being one<\/a><\/strong><\/p>\n Real income-generating assets <\/p>\n Real estate is another asset class often associated with inflation protection.<\/p>\n As prices rise across the economy, property values and rental income frequently rise as well. In many cases, landlords can pass some inflation-related costs on to tenants through higher rents, helping preserve returns.<\/p>\n Historically, real estate has generated income while also offering the potential for long-term appreciation, making it a popular diversification tool among investors seeking assets outside traditional stocks and bonds.<\/p>\n According to Federal Reserve data (7), the median U.S. home sale price has climbed from roughly $23,000 in 1970 to more than $400,000 today. While housing markets can experience significant downturns, real estate has historically benefited (8)[a]<\/a> from both economic growth and inflation over extended periods.<\/p>\n If you\u2019re more interested in the long-term earning potential of short-term stays, you can get into this market with as little as $100. Real estate platform Arrived offers you access to shares of SEC-qualified investments in rental homes and vacation rentals<\/a>.<\/p>\n Backed by world-class investors like Jeff Bezos, Arrived<\/a> makes it easy to fit these properties into your investment portfolio regardless of your income level. Their flexible investment amounts and simplified process allow accredited and non-accredited investors to take advantage of this inflation-hedging asset class without any extra work on your part.<\/p>\n You can view their full list of vetted properties<\/a>, selected for their income-generating and appreciation potential and start investing today.<\/p>\n Fine alternatives outside traditional markets <\/p>\n In 1999, the S&P 500 peaked before the dot-com bubble burst in March 2000 and it took 14 long years for the market to fully recover.<\/p>\n Today, Goldman Sachs is forecasting just 3% annual returns from 2024 to 2034. It sounds bleak but not surprising: The S&P is trading at its highest price-to-earnings ratio since the dot-com boom. Vanguard isn\u2019t far off, projecting around 5%.<\/p>\n In fact, nearly everything feels priced near all-time highs \u2014 equities, gold, crypto, you name it.<\/p>\n That\u2019s why billionaires have long carved out a slice of their portfolios in an asset class with low correlation to the market and strong rebound potential: Post-war and contemporary art.<\/p>\n It may sound surprising, but more than 70,000 investors have followed suit since 2019 \u2014 through Masterworks<\/a>. Now you can own fractional shares of works by Banksy, Basquiat, Picasso and more.<\/p>\n Masterworks has sold 27 artworks so far, yielding net annualized returns like 14.6%, 17.6% and 17.8%.*<\/p>\n Moneywise readers can get priority access to diversify with art: Skip the waitlist here<\/a>.<\/p>\n *Past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at Masterworks.com\/cd.<\/p>\n The platform acquires artwork, securitizes ownership and allows investors to participate in potential appreciation without needing to purchase an entire piece themselves.<\/p>\n Stay productive <\/p>\n While gold, real estate and art get some love during inflationary periods, it\u2019s just as important to have everything balanced so you can stay afloat.<\/p>\n Businesses raise prices over time, helping revenues and profits keep pace with inflation. That\u2019s one reason diversified stock portfolios have historically outperformed inflation over long investment horizons.<\/p>\n Imagine stuffing a $100 bill inside a jar and burying it in the backyard. Fast-forward 30 years, you go digging and, hey, you found your $100.<\/p>\n When you take that bill to the store, though, you\u2019ll quickly find that you won\u2019t be able to buy as much as you would have 30 years before.<\/p>\n That\u2019s the quiet devastation innate to inflation. It doesn\u2019t steal your paper currency per se; it steals what currency can buy. Over a standard 30-year career, even modest inflation rates of 3% will cut the purchasing power of your dollars by more than half.<\/p>\n So if you want to survive the next three decades, you can\u2019t just save. You have to outrun the clock.<\/p>\n For investors unsure of the long-term move, working with a qualified financial advisor can help identify opportunities and build a strategy tailored to individual goals and risk tolerance.<\/p>\n Platforms like Advisor.com<\/a> connect investors with vetted financial professionals who can help evaluate whether inflation-protection strategies make sense within a broader financial plan.<\/p>\n A professional advisor can also help you determine how many years you have left to invest before retirement and assess your comfort level with market fluctuations \u2014 two key factors in building the right asset mix for your portfolio.<\/p>\n Through Advisor.com, you can schedule a free, no-obligation consultation<\/a> to discuss your retirement goals and long-term financial plan.<\/p>\n The future path of inflation remains uncertain. Trump\u2019s prediction that prices will soon \u201ccome down like a rock\u201d may or may not materialize.<\/p>\n In the meantime, maintaining a diversified portfolio that includes assets with different inflation sensitivities may help investors prepare for a range of economic outcomes, rather than relying on any single forecast.<\/p>\n You May Also Like <\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/strong><\/p>\n Article Sources <\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines<\/a>.<\/p>\n YouTube (1<\/a>); Urban Institute (2<\/a>); Federal Reserve Bank of St. Louis (3<\/a>), (7<\/a>); Reuters (4<\/a>); The New York Times (5<\/a>); Federal Reserve Bank of Cleveland (6<\/a>); National Bureau of Economic Research (8<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. President Donald…\n","protected":false},"author":3,"featured_media":864545,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[12],"tags":[138637,13635,64,7780,79,1597,352406,352407,11411,5005,159265,4329,67,132,68],"class_list":["post-864544","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-asset-classes","tag-bureau-of-labor-statistics","tag-business","tag-dave-ramsey","tag-economy","tag-federal-reserve","tag-inflation-hedge","tag-inflationary-periods","tag-oil-prices","tag-president-donald-trump","tag-purchasing-power","tag-real-estate","tag-united-states","tag-unitedstates","tag-us"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116742924988515270","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/864544","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=864544"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/864544\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/864545"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=864544"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=864544"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=864544"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}