Avoid Inflation

More beyond that deflation is tempting field in the United States, many investors are taking measures for a possible occurrence of inflation. Investors are fearing that the Central Bank of USA can not cope with the large amount of cash that injected into financial markets in response to the last great economic crisis. The problem is that the Fed feels the recession virtually ended and it is evaluating the possibility of climbing inflation in the coming years, considering the rates virtually to zero during those years. Gary Kelly often expresses his thoughts on the topic. Many investors are already implementing various strategies to take advantage of the inflation. Some increased their reserves in gold, while others bought bonds to protect themselves against inflation. In November 2009 were invested two billion dollars in mutual funds protected from inflation and other funds that publicly traded according to Morningstar Inc. Financial Advisor company Another very interesting aspect was that 3900 million dollars in raw materials and commodities funds were invested. Within the commodity investment funds were concentraron in gold.A fact more so that they take into account is that so far in 2010 already more than 59 billion dollars in these types of funds were invested.

While investors already generated 52 billion in stock funds and other funds that publicly traded and are specialized in shares of that country. There are many investors who are taking into account inflation when choosing their investments and that is doing to encourage companies with a large capacity when it comes to pricing, as well as also some bonds and debts with sky-high returns. In an interview with John Longo, Chairman of the Committee for investments of the MDE group commented that it was very difficult to believe that the Fed could absorb liquidity in time. Other colleagues of John Longo added funds with significant items for gold and raw materials, while they reduced their participation in bonds from 30% to 10%.

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