• Investors need to be aware that inflation damage compounds over time. We have undergone a secular change, and inflation will continue to move up over the medium term.
• Inflation has slowed from its 9.1% high in June 2022, but it has reaccelerated to 3.5% from the 3.0% low in June 2023.
• If you had $1,000,000 in cash in March 2021, the purchasing power of that would only be $848,445.
• Federal government spending is out of control, which has continued to fuel inflation. Driven by increasing interest expenses and spending, we expect a $2 trillion deficit for 2024.
• The Fed has been complicit. The balance sheet ballooned from $872 billion before the 2008 financial crisis to $8.9 trillion in April 2022. QT has made a dent, but it still sits at $7.4 trillion.
• Nominal GDP, 10-year and 30-year Treasury yield generally move in tandem. Currently, interest rates are below what we would expect.
• Own assets that will do well in an inflationary environment.
• Stocks should do well. We like oil and gold stocks in particular, as they are well-positioned from a supply-and-demand perspective and are undervalued by the market.
• We are avoiding any bond over 5 years in maturity. Inflation eats away at the value over time, and as rates go up, the nominal price of the bond is destroyed.
• Cash-like instruments like CDs and T-Bills with under 1-year maturity are also a good choice.

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This article or video features Benjamin C. Halliburton, CFA or an investment idea(s) that Mr. Halliburton or Tradition Investment Management, LLC (Tradition) may invest in. Mr. Halliburton is the founder and owner of Tradition Investment Management, LLC, a registered investment adviser. Tradition is doing business as (DBA) Building Benjamins in the publishing, email, and website space. All material on the website should be considered paid advertising by Tradition. This article is a financial publication and is provided for educational purposes only. It is not an investment recommendation nor investment advice. It does not take into account your personal circumstances and whether this investment is appropriate for you, your objectives, or your risk tolerance. Under no circumstance is Building Benjamins or Tradition Investment Management LLC responsible for any actions that you may take after reading this educational information. Nothing from Building Benjamins should be considered personal investment advice. Building Benjamins and Tradition Investment Management LLC, the website, emails, interviews, social media pages, and other materials are published by Building Benjamins and do not necessarily match the opinions of the individuals or companies published or quoted herein. Investing, particularly stock or ETF investing, is risky and may result in losses and sometimes loss of your entire investment. Stock investing has company-specific operational risks like demand, competition, legal and regulatory, and broader financial market risks like liquidity, economic cycle, and government policy. You may lose money in any stock investment or other investments and are solely responsible for those decisions. Mr. Halliburton, Tradition Investment Management LLC, and/or the authors on this site may or may not have positions in the securities discussed in this educational report. The information herein is shared as an educational endeavor. Mr. Halliburton, Tradition Investment Management LLC, and/or the authors on this site may transact in the security discussed at a later date, prior to, or without notification in this format. This is not investment advice but only a discussion of select investments for educational purposes. Building Benjamins is an investment website, blog, or newsletter, and the information contained cannot be reproduced, copied, or redistributed without the prior written authorization of Building Benjamins or Tradition Investment Management LLC. US copyright laws apply. We rely on information from sources we believe reliable, including the companies themselves, but cannot guarantee the accuracy of the information we provide. You rely on this information at your own risk and are responsible for the verification of the data….(read more)

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Inflation is a concept that affects everyone, yet many people do not fully understand its implications on their finances. In simple terms, inflation is the increase in the prices of goods and services over time, which erodes the purchasing power of money. This means that as inflation rises, a dollar won’t buy as much as it used to.

For investors, inflation can have a devastating impact on their portfolios and retirement savings if not properly managed. If inflation is not factored into your investment strategy, you may find that the value of your investments and retirement savings are being eroded faster than you can grow them.

So, how can you protect your portfolio and retirement savings from the damaging effects of inflation?

One key strategy is to invest in assets that have historically outpaced inflation. Stocks, real estate, and commodities are examples of assets that have historically provided a hedge against inflation. By diversifying your portfolio and including these assets, you can potentially protect your investments from the eroding effects of inflation.

Another strategy is to consider investing in Treasury Inflation-Protected Securities (TIPS). TIPS are bonds issued by the U.S. government that are indexed to inflation, meaning that the principal value of the bond increases with inflation. Investing in TIPS can provide a guaranteed return above the rate of inflation, helping to protect your savings from losing value.

Additionally, regularly reviewing and adjusting your investment strategy to account for changes in inflation is crucial. Keep an eye on economic indicators and adjust your asset allocation accordingly to ensure that your portfolio remains resilient in the face of inflation.

Lastly, consider speaking with a financial advisor to help you create a comprehensive inflation protection strategy for your portfolio and retirement savings. A financial advisor can help you assess your risk tolerance, investment goals, and time horizon, and tailor a personalized strategy to safeguard your investments from the damaging effects of inflation.

In conclusion, it is essential for investors to actively manage their portfolios and retirement savings to protect them from the devastating damage of inflation. By diversifying your investments, considering inflation-protected assets, and regularly reviewing and adjusting your investment strategy, you can help ensure that your portfolio remains safe and resilient in the face of inflation. Speak with a financial advisor today to create a customized inflation protection strategy that works for you.