Thursday, October 18, 2012

Invest for Inflation

I'm going to bet you'll hear a lot more about inflation.  The US$ is cheap while the American economy is improving.  It means goods and services inevitably get more expensive.  Now this is a problem as people worry that their money isn't doing anything while the world gets pricier.  It would imply your money's purchasing power is eroding.  That's why everyone is  binging on real estate, gold, stock markets, whatever.  This is called inflation hedging.

Personally I'm terrified of inflation.  And, as I get older it becomes more real.  Especially when I recall what things used to cost.   Don't do it - it makes you feel ANCIENT.  I did this just recently when I caught up with my 14 year old god-daughter.   Unfortunately for her, I was blubbering on about what things used to cost when I was her age.  OMG - So Dorky (I know)!  But, my point is make sure your money is working for you.  Please Invest wisely.

Quickly want to talk about my god-daughter again.  She's great and I'm always so impressed with her style as well as the tunes on her iPod.  Incidentally why don't teenage girls have awkward stages anymore?!?!  Apologies I digress.  I recently saw her sporting a Coach carrier pouch.  It looked so fashionable on her and it seems to be the purse of the moment with teens (much like when I was growing up).  Meanwhile the stock has pulled back hugely.  Indeed, it's a poor cousin to Hermes but I don't think anyone under 30 years of age should be sporting Hermes anyway!  Sorry if I offended so will finish here.  Opinions about Coach aside, if you start to see their product go viral (Lululemon style), maybe have a look at the stock.  

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