Prepare your portfolio for inflation risk with these moves
Recent economic data shows pricing pressures are starting to cool, but inflation could still be a risk as hostilities in the Middle East reignite.
AI Summary
Recent economic data shows inflation cooling slightly, but the pace remains above the Federal Reserve's 2% target, and renewed hostilities in the Middle East have pushed oil prices higher, keeping inflation a risk. To protect portfolios, the article recommends Treasury inflation-protected securities (TIPS) as a direct hedge against inflation, where the principal adjusts with inflation and pays a fixed interest rate until maturity.