How to Protect Against Inflation

Rising inflation means I’ll pay more for things, and the money I’ve got parked in a “high-yield” savings account is effectively earning a negative return.

That’s how I think about inflation. How do investment bankers think about inflation? Let’s just say they go into a bit more depth and use big words like “contango.”

One investment banker, who also happens to be a blogger, wrote an in-depth piece on assets to own, assets to avoid, and what makes them good or bad in the face of inflation.

Why You Should Care About Inflation

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Your Bond ETFs are taxed. Since as a bondholder, you lend money. Your Cash is taxed. As inflation rises your cash becomes less valuable. Equities tend to underperform too. Although in the long run, they will outperform Inflation.

What type of tax is Inflation?

One of the things that may not be intuitive is that when you buy a stock or a bond, current inflation expectations are built into the price that you pay.

How does Inflation Affect the Stock Market?

The market expects inflation to rise this year. In fact, by looking at Bond and Equity prices you can extract the current expected inflation rate.

Will Inflation Rise?

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