The annualized inflation rate, as measured by the Consumer Price Index, has been less than 3% since January 2012 and hasn’t topped 2% since October 2012. And personal consumption expenditures — a separate measure of inflation — actually just turned negative.
But given the threat of another credit downgrade for U.S. government debt amid the looming debt ceiling debacle and given the super-loose monetary policy at the Federal Reserve, how long can we fend off the inflation monster?
Many investors aren’t willing to wait until inflation has started to ramp back up before they pivot their portfolio into inflation-proof assets.
So if you’re worried about inflation as we approach 2014, consider the following investments: