Investing Advise from EquidiaAs an investor, you must look at your real rate of return.
Unfortunately, investors often look only at the nominal return and forget about their purchasing power altogether.
The best way to combat this scenario is to invest in inflation-hedging bets while maintaining your diversity in stocks. This means putting your money in hard assets like real estate or precious metals such as silver and gold while adding stock positions tied to the mining and resource sectors.
As mentioned in the above scenario, If you invest only in stocks, worrying about inflation shouldn't keep you up at night as a company's revenue and earnings should increase at the same pace as inflation.
But if you factor in mining and resource based investments into the equation, there is an opportunity to not only beat inflation, but also protect yourself against stagflation.
One could write a 1,000 page paper on inflation, stagflation, or deflation. But the point I am trying to make is simple. We're in unchartered waters where inflation is apparent but growth isn't. The Fed is printing money and while it worked on the stock market, it has yet to take any major affect on both housing and employment.