Last month there was a popular post here asking, What is the fed going to do about inflation? That's a good question, but i don't expect them to do very much. My question is what are you and I going to do about it, in the way of maybe moving funds around? I'm 65 and my expectations / needs and desires are different from younger folks. I seen this coming and thought about investing in apartments, but didn't really want to. Probably should have, i just didn't want to bother. What are you doing with your retirement money? What do you recommend to guard against inflation chipping away at your nest egg?
The Fed is the "inflation-creating engine". Why do they do that? Well, it's to provide "cover" for the US Government's deficit spending. Unfortunately, there has been SOOOOOOOOO much BS money creation, that it can't possibly "cover" the deficit spending in any meaningful way. America is "swirling the drain". Best snug up your life jackets.
real estate is over priced in existing markets. Meaning that growth will be minimal. I'd probably look into geographically-specific REITs or QYLD.
What are you going to do about inflation? For the retailer, or the government? If the former, there are instruments for this. GLD/BTC/ETH
Diversify across different liquid asset classes (ETF's) and rebalance every few years. More volatile, less percentage of it. That's it. Remember, your goal is insurance against inflation/recession, not beating s&p 500.
Well I’m wondering: What are the chances the fed starts unloading some of its huge balance sheet? What if any effects will this have?
That's a very vague way of describing the problem. Which is ... The U.S. Treasury is swimming in debt from all the crazy give-away" programs from the past 90 years, which helped all the professional politicians get re-elected. These "give-aways" are really Ponzi schemes. In case you haven't noticed, young people, and people who are not even born yet, are obligated to pay for these programs. The largest of the Ponzi schemes include Soc. Security, Medicare and Medicaid. In fairness to these disreputable politicians, none of them forsaw that the U.S. would not keep up any blistering pace of GDP growth, that was characteristic of that era. The inflation now raging is the direct result of the FED buying over half of the U.S. Treasury, as it rolls over. That is just to prevent the "show-stopper" event of the Treasury announcing they cannot any longer service the interest payments on the debt. This is not a Joe Biden problem or a Donald Trump problem. It is a problem that started with FDR, POTUS 32. A very long winded answer. Short answer, buy some food commodities. Government cannot stop inflation (because they can't afford higher rates on the debt). So they will start capping price levels. Problem with capping prices is that it creates shortages (Producers stop creating those goods and services) Think Gold and Silver. Who cares about shortages of Gold and Silver. Everybody hates the Hunt Brothers But if they started capping prices on commodities like food , shortages of food will ensue, and the masses will become unruly. The Ruling Class can't have that.
What are you going to do about high inflation? Just Trade index futures & perhaps gold, long term bonds.
at your age, I hope you're healthy enough for the maintenance chores or else they d eat into your profit. inflation is fact of life. it's been around, but high inflation is unusual, at least for the US. it'd reverse to the mean, probably, it'd take a bit longer this time around. as you've heard it stocks beat bonds over the long run + need to know when to get off the stock markets. that's one way to fight inflation . there's a poster in here who does the wheel with SPY covered calls. something you might want to look into.