Investment Advice in an Era of Inflation

[millenial4freedom]

What's the best way to profit over upcoming era of inflation?

[millenial4freedom]

Hi All - It's been a long time since I've posted here, but I'm interested in hearing from some Freepers who are savvy investors.

I'm a young investor and I'm thinking about pulling out some/most of my holdings in the stock market. While the Dow continually sets a new ATH nearly every day, the market feels very frothy and gains seem to be concentrated in large-caps and cyclicals. Mid-caps and small-caps seem to be struggling for direction right now. I know Yellen spooked the markets the other day by declaring that interest rates may need to rise to contain an 'over-heated' economy (ha-ha).

Forgive me if I sound ignorant (I wasn't alive during the reign of the Peanut Farmer), but do you think the Fed may follow through with the plan to raise rates or keep them low enough to protect Biden?

If rates do rise, are there any potential class of stocks or investments/commodities I should be looking at? I'm trying to avoid crypto because it seems scammy to me, but I'm interested in gold or silver.

I do have a few recovery stocks and long-term plays that I want to keep: NCLH, CCL, AAL, SABR, NIO, BA and PLTR. I know NIO and PLTR are more prone to declines in an era of rising rates, but I'm willing to hold them because I do believe they will prove to be solid holdings in the long-run.

I really appreciate any input you folks might have. Thanks!

[ButThreeLeftsDo]

Hire a financial planner instead of getting free advice here.

[Mariner]

If you anticipate moderate to severe inflation, convert your cash into a low interest mortgage on a house or a farm.

If there is cash left over, buy something else that is real.

And somehow leverage these insanely low interest rates. The gap between a 2% mortgage and 10% inflation could make you rich in as little as 10 years.

[KarlInOhio]

Real estate with a huuuuuuge, fixed rate loan. I heard of stories of South American investors who ended up with the stamp costing more than the monthly payment after years of inflation.

[FranklinsTower]

Look into Kinesis.

[BenLurkin]

Buy real estate. Preferably a place to live.

[billakay]

I finally bought my first home (end of October) at age 35 after years of renting in the US and a stint abroad. Bought a beautiful home for 505k with a 2.875% fixed mortgage. A similar home in the development, but a bit older, just went under contract with the price listed at 635k. I’m feeling pretty good about it now!

[Trumpisourlastchance]

Gold, silver, gold & silver mining equities.

[Jane Long]

Congrats! On your purchase and your ‘equity’!

Very nice.

[dynachrome]

Stay centered. Don’t look for get rich quick stuff. Buy value. Do you really need new Nikes at $200? A $60,000 truck? etc.

[Jane Long]

And, I’m even more impressed that you joined FR when you were only 18!!

Smart cookie :-)

[Jonty30]

In times of inflation, it is time to buy something that has real value,like precious metals or invest in yourself by learning a real skill or do some additions on your house.

That type of stuff.

[TexasGator]

“I’m a young investor and I’m thinking about pulling out some/most of my holdings in the stock market.”

If you are thinking of pulling out, you are not an investor.

Keep investing in good companies and you will have a nice retirement.

My mother became a widow with 20k income and $150k assets. She died a millionaire with a nice car and house.

[Jonty30]

In times of inflation, it is time to buy something that has real value,like precious metals or invest in yourself by learning a real skill or do some additions on your house.

That type of stuff.

Something with intrinsic value.

[Rightwing Conspiratr1]

I want to say one word to you. Just one word.
Are you listening?
Plastics.

[impimp]

Bitcoin

[billakay]

Thanks!

I came to political awareness young, with the help of my parents, plus the input of G. Gordon Liddy and Rush Limbaugh. I think I got elected a Republican Committeeman around that time as well (age 18-19 or so). How time flies!

[packagingguy]

Farmland. Or you can invest in a company that specializes real estate (not retail or now commercial office space).

[Theoria]

Nobody is capable of picking the best stocks, it is wiser to pick all of them. A total market fund with bonds is a idea.

Vanguard VTI and VTSAX with some bonds, BND.

[Signalman]

High inflation...I put my money in money market accounts.

I recall one month back in the Carter era where I got 17%. Of course, inflation was running at 14%/yr at the time so it’s not as good as it sounds.