Not exact matches
I'm not predicting a return to
inflation, only that it is a scenario
against which
people might want to
hedge.
And now that our careers are going, we're looking at maxing out two traditional 401Ks and two Roth IRAs this year, and we see the Roth IRA portion as a small
hedge against rising future tax rates (or what I think is a bit more likely to happen — tax brackets that don't keep pace with
inflation, so keep sucking in more and more
people to higher brackets).
I don't think that's what most
people mean when they talk of gold as a
hedge against inflation in their portfolio.
Before deciding to take significant action to
hedge against the possibility of
inflation, a
person should first consider what the impact of a bout of
inflation might actually be on their particular situation.
Therefore, many
people hedge against a market crash and
inflation risk by using an asset allocation model.
options an everyday
person has to
hedge against inflation.
The problem is,
inflation and high commodity prices — including oil and gas prices — tend to feed on each other in a vicious circle:
people stock up on commodities to
hedge against inflation, which leads to even higher prices, and thus
inflation continues to rise.