Expert discusses the asset investors should consider to hedge against inflation.
Transcript:
CONWAY GITTENS: If I am near retirement age or I’m a retiree, which a lot of our viewers are, is that 10% to 20% too much risk?
MALEEHA BENGALI: No, not at all. I’ll tell you why. Because if you’re aggressive, I would allocate 30% or 40% If China comes back and we see massive value in commodities, I would go probably get out of bonds and go more into commodities. But if you’re a conservative portfolio manager, think about your money you have in your pocket right now. Your dollar is getting devalued every single day based on inflation, based on more fiscal spend.
So you as a retiree will have to put some money into the savings market or into commodities because commodities are the best inflation protected securities, because they go up with inflation. So if you want to allocate, don’t go something risky like Nat gas or something like tin or what have you, copper, oil and gas. These are like stable commodities to get involved in gold and silver. I always tell all my big pension clients, put your money in physical gold, physical, silver. You have to if you don’t have it today, you’re losing out because that’s doing incredibly well. And through 10 years, gold always holds its value.
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