What can I do to ensure the return on my investments outperforms inflation?
Christina asked:
Not the Consumer Price Index idea of inflation (2%), but the inflation that takes into account food and energy, education and healthcare (more like 7%). Am I limited to gold and international bonds and stocks while the P/E ratios of S&P 5oo companies averages 29?
Not the Consumer Price Index idea of inflation (2%), but the inflation that takes into account food and energy, education and healthcare (more like 7%). Am I limited to gold and international bonds and stocks while the P/E ratios of S&P 5oo companies averages 29?
Terry:
Nothing will guarantee you a return at all, never mind one that exceeds inflation.
However, if you look at the stock market, then historically over the long term it has outperformed bonds, CDs, money markets, and precious metals.
All investments carry risks; to get the biggest returns, you must also accept the biggest risks.
January 30, 2009, 6:28 pmFranco:
The index you have in mind is called the cost of living index. The consumer price index has been invented by the government to deceive people into thinking that inflation is not so bad.
On the stock market returns are not guaranteed and you may well lose much of your money. The best you can do is to invest wisely and hope that in the long term, share prices will rise as they did in the past.
January 31, 2009, 6:41 ambeesting:
The pros say the secret to successful investing is ‘Time-ing’!
Here is a site that offers 4 interest paying currencies & Gold/Silver as investment or safe storage, your choice.
You may be able to switch back & forth from currency to precious metals, I haven’t tried that yet.
I have stocks, & physical Gold/Silver, & believe me the physical Gold has givin me aq ‘Much’ better rate of return {about 24%} over the last 6 years, than my stocks.
February 2, 2009, 7:44 amslavaret2:
The most conservative way is to invest in stocks that increase dividends faster than the rate of inflation. DVM would be one candidate.
February 4, 2009, 7:21 am