Whilst being in the credit crisis hangover we are starting to see inflationary forces at work if.
There are numerous consequences that come with inflation, although the U.
S.
government does not seem to think inflation is something to factor in over the next couple of years.
But this is incorrect.
What normally happens during inflation is that you lose the purchasing power of your currency.
Because inflation facilitates spending rather than saving.
There are already leading signs that inflation will be violent somewhere down the track.
For now people are in a false sense of security.
Many people are confused about investing during inflation.
A lot of people think it is hard to make money, during inflation when this is simply not true.
It is actually easier to invest during inflation, because the best investment opportunities stick their heads out clearly in the open.
One of the best ways to invest for inflation is taking up indexed securities and treasury inflation protected securities.
This means that your investment will have immunity against inflation.
Treasury inflation protected securities, otherwise known as t.
i.
p.
s are also backed by insurance and also by the government.
Their value normally increases as inflationary pressures come in but interest rates remain fixed.
It is important for you to sit down and understand the risks involved with these types of securities and investments.
Normally the longer you hold on to these maturing investments are more money you make, as long as you wait for them to mature.
If you are planning to buy more property, now is a great time to do this if as property prices have dropped dramatically over the last two years.
But you must understand with the current debt levels seen in America there are certain risks involved because property prices could drop from the current levels right now.
If you are worried about risks you can select properties that come with fixed mortgages.
A lot of Property Investors are more reliant on cash flow, but if you wish to invest during inflation you need to hang on to these investments longer term and not worry about the short term constraints.
Buying low and selling high has always worked for many Property Investors in the past.
But remember you can never ever buy right at the bottom of the market off and never sell right at the top of the market, this is almost impossible.