Is it possible to control inflation?
It is about time to think how to protect or optimize our portfolios and control inflation damages. These are some ideas: - Months ago, according to media Dick Chaney moved part of his wealth in inflation-adjusted Treasury bonds, good for him. Inflation-adjusted bonds are no more the bargain they once were.
- Gold has gained about 75% since its lows in February 2001, largely because of the declining value of the dollar. The gold is recognized as money when paper is loosing value.
- Oil the "black gold" and energy mutual funds may be a choice for tough guys who can take volatility jumps. I would not do it.
- Gold funds in gold-mining stocks rise much more than the metal itself. A small position in a gold fund may help.
- Real estate and real estate funds along with gold are classic inflation hedges. Income properties investments are typically held for long-term gain and as a hedge against inflation.
Properties appreciate in value faster
than inflation rises
All we can do is to recognize that inflation is here and it is higher than we think. Real estate investors actually profit from inflation because with a 30% equity, just a 3% inflationary increase in property value results in a 10%
return on investment (ROI)
Without even considering normal operating profits, tax benefits and appreciation. This is the whole point. Real estate can be purchased in many forms: single family residential housing, apartments, raw land, shopping centers, industrial buildings, warehouse, etc. The investment can be direct, or through various kinds of partnerships and investment trusts or various instruments REIT and mutual funds. For more specific idea go to
What real estate to buy?
This is how we control inflation' damage. Many economists think inflation is rising faster than the Consumer Price Index (CPI) by one percentage point a year.
For more detailed info consider:
"Invest and Manage Properties Successfully"
and get "My working Plan" and get started for only $15, or download FREE the
"Manager's Surviving Kit"
to get an idea how we manage and if this method will work for you.
If you want to know what is the real estate management and what some tenants do, read
"Sample Letters for Investors and Managers."
This e-book may be entertaining or used for comedy or horror movie scripts inspiration. Real life facts are beyond our imagination boundaries sometimes.
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