Investor TIPS for Fighting Inflation

With the CPI up, The Fed is expected to boost interest rates in late June. Here is one strategy that protects investors from rising prices

The consumer price index (CPI) for May came in above Standard & Poor's expectations, pushing up the year-over-year headline index to a 4.2% pace from 3.5% in April and the core index (excluding food and energy) to a 2.4% pace from 2.3% the month before. "The stronger-than-expected pricing data will likely add to inflation fears, adding upward pressure to yields and holding down equity prices," says David Wyss, Standard & Poor's chief economist (see BusinessWeek.com, 6/14/06)


*Just thinking that I should have placed this in the General Investing?

Nah, fine here - will be interesting to see if the Fed continues the rate rises further any time soon - I'd hedge a bet they'll pause after the recent small hike, just to see.

Geez, I hate it when everyone gets scared. This time it'll be inflation and they'll all start acting like idiots. As soon as one person starts, it like a boom. Then we will have a problem.

So true because instead of analyzing, people go with whatever they heard through the gravepine.

This is reading was posted past year, but worth a reading for finding what U.S. government said about monetary credibility, inflation, and economic growth:

FRB: Speech, Ferguson--Monetary Credibility, Inflation, and Economic Growth--November 3, 2005