What’s the best way to hedge against inflation? Gold? That's I have been hearing on the conservative radio talk shows a lot. In this down economy and our government is borrowing more than ever, and rumor (trending to) of higher taxes – one can only think of the path other countries had taken, they all end up with much high inflation rate.
I don’t want to holding to a bunch of worth "less" US dollars in mutual funds and stocks. I strongly believe that our inflation is likely be long-lasting for the next 15-20 years as we shifting toward European taxing system. Spanish government is struggling with its socialist reform policy – 30 years after the dedicator ruler of Francisco Franco, the unemployment is still among the highest in European Union.
Buy American! It’s not a bad idea, but tot buy what? Real estate is often quoted as one way to hedge against inflation.
http://www.thedigeratilife.com/blog/index.php/2007/09/18/12-ways-to-beat-inflation-dont-let-rising-prices-get-you-down/
In this down economy may not be a good idea to buy more properties. I just learned that a tenant inform a close friend that that they can’t pay the rent anymore – because of their business income has dropped.
Wow – they are facing to loose rent income for at least 3 months, and lots of legal fees to evict tenants. I wonder how “real estate investment” is really doing to hedge against inflation. Their current year return on the rental property is a whopping negative #@#$@.- its worse than inflation.
