ARE YOU PREPARED FOR INFLATION?

Recent upticks in interest rates, gold, and energy prices are suggesting a change. The inflations of the 1920's, 1950's, and 1970's came as a surprise. Presently, the same contrasts may be converging which could ignite a long-term inflationary spiral. It may be too early to tell, yet alert investors are tracking the latest quarterly shift in case action needs to be taken to protect assets and hedge portfolios.

The beginning of increased interest rates is often foretold by an increase in the discount rate after a long staircase of declines. After three discount rate increases there is an almost certain change to a higher interest environment. This could be unfolding right now and it most probably will take several months to identify that interest rates have begun a long secular change to higher rates that could last for 18 months or longer.

Inflation and interest rate changes may also create changes in other currencies versus the dollar. Should inflation assert itself, the dollar could weaken in relationship to other currencies. Inflation has been in an overall decline since 1980.

Call 800 FOR FUNDS to speak to a mutual funds specialist to discuss current market trends.