Comments on: Inflation Hedging: Four Ways To Protect Your Investment Portfolio

By: Brent

Brent — Sun, 07 Jun 2009 19:33:18 +0000

Your analysis of the inflation based on a Big Mac is wrong. You cannot divide the percentage increase by the number of years. It goes like this: the price is 8 times higher in 50 years, so it has doubled 3 times. So, it doubles every 16 years. Since inflation compounds, you have to find the interest rate which compounds in 16 years – it turns out to be around 4.5%. This is the inflation rate for Big Macs. This is comparable to actual inflatin, while 13% is nothing like actual inflation. Not understanding compound interest is a serious error for anyone commenting on the economy.

By: Makram Hani

Makram Hani — Sat, 06 Jun 2009 17:31:34 +0000

Is real estate a good hedge against inflation.

By: Martha

Martha — Mon, 01 Jun 2009 01:08:46 +0000

Thanks for the article. It was clear, to the point and contained great advice.

Martha

By: Jon

Jon — Sat, 30 May 2009 01:28:46 +0000

Regarding GLD I strongly advise anyone to read this article before considering investing:-

http://www.rapidtrends.com/2009/02/13/owning-gld-can-be-hazardous-to-your-wealth/

By: Stewart

Stewart — Fri, 29 May 2009 17:10:00 +0000

Good article and good advice

By: Benjamin Bush

Benjamin Bush — Fri, 29 May 2009 12:46:19 +0000

Dave – Thanks for the ideas – Ben

By: DAHLMANN

DAHLMANN — Fri, 29 May 2009 11:49:57 +0000

VERY HELPFUL.
HOWEVER, I AM CONCERNED ABOUT THE ALREADY INFLATED GOLD PRICES. WOULD I BE PAYING
TOO MUCH IF I BOUGHT GLD??

By: Ron Smith

Ron Smith — Fri, 29 May 2009 11:43:03 +0000

The article was timely, clear and helpful. I will apply the wisdom and recommendations to my portfolio immediately.

Thanks.