Three Alternative Sources for the Current Inflation Rate
Inflation can be a nasty surprise for investors who are not amply prepared. Its effects can reduce your real return on an annual basis and make it much more difficult to keep up with your standard of living. With the newly-announced open-ended quantitative easing program that involves a fair amount of money printing, many investors are worried that it is only a matter of time before inflation kicks up and wreaks havoc on their investments. Some are predicting hyperinflation, while others like Bill Gross have stated that inflation will be significant enough to turn all real returns to 0% for the foreseeable future [for more inflation news and analysis subscribe to our free newsletter].
Warning: John Hussman’s Model Shows the Worst Short Term S&P Risk-Reward in a Century
As last week’s QE3 announcement juiced equities, valuations began to look stretched according to some long-term metrics (such as the Shiller PE, which approached 24). The Bulls certainly proved to be in the majority as the market’s upward move was substantial, but as gold prices surged after the QE3 announcement as well, it was clear that some investors were growing increasingly wary of inflation and general market frothiness.
Norway Prepares For The End of The World
The concept of a world-ending economic collapse seemed to be a joke several years ago, but as time has pressed on, more and more people have hopped on the bandwagon of a world-ending crisis, be it a natural disaster or economic crisis. But while some people may be sitting around merely talking about the possibilities of all of the terrible things that could happen, one country is actually doing something about it. The Norwegian government has funded and built a seed vault in preparation for any kind of regional or global disaster [see also Doomsday Special: 7 Hard Asset Investments You Can Hold in Your Hand].
Are Diamonds the Next Gold? GemShares Planning Diamond Index
Everyone knows that gold is one of the most prolific commodities of all time, as its store of value has been coveted by people across the world for centuries. But another commodity is equally as popular among the wealthy though its presence is relatively unknown. Diamonds are an extremely lucrative hard asset that may soon become the next big commodity given a recent filing. GemShares, a Chicago-based firm is expected to secure a patent to create an index for diamond pricing which can then be applied to futures contracts and ETFs and so on [for more breaking commodity news subscribe to our free newsletter].
The Beginner’s Guide to Wine Investment Funds: How to Invest in Fine Wine
Drinking wine has been a pastime for thousands of years, as people from various periods in history have all enjoyed this alcoholic beverage. Today, wine remains an incredibly popular drink, but it has also developed into something else, an investment. There are now a number of people who will invest in wine for its potential to appreciate with time, allowing the owners to sell at a profit. Generally, as wine starts to age it becomes more coveted by the market, pushing its value higher (note that this only works with certain kinds of wines, your two-buck-Chuck will not fall under this category) [see also Doomsday Special: 7 Hard Asset Investments You Can Hold in Your Hand].
The Beginner’s Guide to Art Investments: How to Invest in Fine Art
When most investors think of commodity investing, their go-to image is a gold coin or barrels of crude oil. But there are a number of other options that fall beyond the “standard” commodities. Many of these options fall under the “hard assets” category, as they are not traded on any sort of market, there are no futures or options, and the only way to establish exposure is to physically own the commodity. One of the most enticing hard asset investments comes in the form of fine artwork, as collectors have created a hefty supply and demand system as the years have gone by [see also Doomsday Special: 7 Hard Asset Investments You Can Hold in Your Hand].
