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Building a Portfolio That Will Stay Afloat When Inflation Returns

Source: The New York Times

As the American government continues to pump money into the economy, many investors have started to worry that inflation is inevitable. Most economists don’t expect inflation to arrive anytime soon. But nobody really knows when it will appear or how corrosive its effects will be. In the meantime, financial planners are suggesting that investors make sure that their portfolios are well positioned to withstand any impact on their hard-earned money — before it’s too late. “There are a lot of people who are worried about rising deficits and the prospect of a falling dollar, and all of these things will put upward pressure on inflation,” said Alan Gayle, senior investment strategist at RidgeWorth Investments. “We don’t see inflation as a problem this year and even perhaps for 2010, but it is a factor that investors should try and incorporate in their portfolios as they go forward.”

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