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Is High Inflation All But Guaranteed?
Many pundits (and a good number of individual investors) have been predicting high inflation as a result of the Federal Reserve’s monetary policy. Over the four years ending 2012, inflation has averaged just 2.2 percent per year, and currently the market expects inflation over the next five years to be just 2.1 percent per year. Clearly, realized inflation has been low and the market expects inflation to be low in the future, which can hardly be interpreted as signs that high inflation is a foregone conclusion. This ....
Do Sectors Matter?
As the number of exchange-traded funds (ETFs) has multiplied, the number of sector ETFs has exploded. There are now ETFs that cover every sector of the U.S. stock market imaginable (health care, telecommunications, consumer discretionary, etc.) and even international and emerging markets sector ETFs. Lost in all this is the general finding that sectors really aren’t that important, particularly over longer periods of time.
The long-term returns of most....
Protecting Your Portfolio Against Inflation

At an annual inflation rate of 3 percent, a retiree who is currently spending $100,000 per year will find that spending has grown to approximately $134,000 within a 10-year period. Ideally, most investors want the growth in the value of their portfolio to track inflation as closely as possible and hopefully exceed it substantially. Inflation protection is also important because traditional asset classes such as stocks and nominal bonds have tended to do poorly when inflation is unexpectedly high.