From Investing.com: 2024-04-26 15:31:00

In Q1 2024, the US reached a historic milestone by paying over $1 trillion in interest due to a $5 trillion money supply boost since 2020, leading to rapid inflation reminiscent of the 1980s. The Federal Reserve has initiated the fastest rate hike since the 1980s in response. By October 2023, the USG had a $1.7 trillion budget deficit at 6.3% of GDP. With inflation proving resilient, the core PCE index rose to 2.8% in March, putting the Federal Reserve in a challenging position.

JPMorgan Chase CEO warned of inflation from huge fiscal spending, emphasizing the need for investors to restructure portfolios to benefit from inflationary pressures. Commodities like gold and silver are seeing significant YTD gains, while Bitcoin has outperformed traditional assets with a 51% increase. Agriculture products and farmland assets are also performing well.

Real estate investment trusts (REITs) and Treasury Inflation-Protected Securities (TIPS) offer solid options for investors looking to hedge against inflation. REITs, like Arbor Realty Trust, provide attractive dividends with lower risk, while TIPS adjust payments according to CPI moves. Despite TIPS’ limited wealth-building potential, they serve as a reliable inflation hedge in a time of rapid money erosion.



Read more at Investing.com: Why Commodities, Real Estate and TIPS Profit From High Inflation