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Give Yourself an “Inflation Bonus”

Posted August 20, 2021

Aaron Gentzler

By Aaron Gentzler

Give Yourself an “Inflation Bonus”

“Who do you think has a better handle on inflation?” Zach asks… rhetorically. “The older generation certainly has experience on their side.

“We've just experienced a 20+ year bull market for bonds -- which tells us that interest rates have been steadily heading lower for decades -- so inflation has been modest that entire time.

“How could younger Americans worry about something they haven't dealt with their entire professional careers?”

But here’s what their elders know: “Inflation causes the value of your savings to drop,” says Zach. “It drives prices higher as it reduces the purchasing power of your savings.

“Fortunately, there's still time to protect the value of your savings…

Send your opinions to, TheRundownFeedback@StPaulResearch.com

Your Rundown for Friday, August 20, 2021...

Give Yourself an “Inflation Bonus”

“There are some very good ways to beat inflation so that you wind up in a better position,” Zach continues.

“There are a few key categories that should be particularly effective in protecting your wealth and growing your spending power over the next few months…

Precious metals: “Gold and silver tend to hold their value and even accelerate higher when inflation fears kick in.

“Over the last few months, gold and silver haven't performed the way they typically do when inflation picks up,” Zach notes. “But for a longer-term inflation investment, I still think gold, silver and mining stocks that produce these precious metals will be great ways to use inflation to build your wealth.

Real estate: “Here in the U.S., there’s just too much demand for homes and builders aren't creating enough supply,” he says. “Investing in real estate is a great way to turn inflation on its head and make it work for you.

“You can also invest in homebuilder stocks and in real estate investment trusts (or REITs) that own and rent out single-family homes or apartment buildings.

Blue chip stocks:You can protect your savings from inflation just by purchasing shares of stocks that generate profits and pay dividends,” says Zach.

“Owning stocks that pay regular dividends can allow you to keep less cash on hand because you know that you're getting payments from these stocks month after month. Since cash sitting in your bank account will lose value thanks to inflation, you want to hold as little of it as possible.

“With a little planning,” he says, “you can have your dividend checks come in right at the times when you need cash to do your grocery shopping, pay your utilities or other expenses.

“Meanwhile, most of the rest of the money you've saved is still working hard for you invested in companies that are growing with our overall economy,” says Zach. “Bonus points if you buy shares of a company that enjoys bigger profits when inflation heats up.

“Remember, inflation is here and it is affecting your wealth. Don't panic,” he urges, “but don't let your cash lose value during this period.”

Market Rundown for Friday, Aug. 20, 2021

S&P 500 futures are down 0.4% to 4,385.

Oil is down 1.7% to $62.62 for a barrel of West Texas crude.

Gold is up $3.90 to $1,787 per ounce.

Bitcoin’s up $376 to $47,042.

Send your comments and questions to, TheRundownFeedback@StPaulResearch.com

Enjoy the weekend… We’ll talk more Monday.

For The Rundown,

Aaron Gentzler

Aaron Gentzler
Editor, The Rundown
TheRundownFeedback@StPaulResearch.com

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