{"id":1929,"date":"2013-11-18T06:31:22","date_gmt":"2013-11-18T14:31:22","guid":{"rendered":"http:\/\/staging-prblog.paladinregistry.com\/blog\/?p=1929"},"modified":"2015-11-03T15:52:47","modified_gmt":"2015-11-03T23:52:47","slug":"protecting-your-investments-in-an-inflationary-environment","status":"publish","type":"post","link":"https:\/\/www.paladinregistry.com\/blog\/retirement\/protecting-your-investments-in-an-inflationary-environment\/","title":{"rendered":"Protecting Your Investments in an Inflationary Environment"},"content":{"rendered":"<p><strong>The Debt, The Deficit, and Quantitative Easing<\/strong><\/p>\n<p>Many people are aware of the fiscal crisis in Washington. <a href=\"http:\/\/www.paladinregistry.com\/retirement\/investment-performance\" target=\"_blank\">Investment portfolios need to take into consideration macroeconomic trends and the risks of inflation <\/a>that may result from the fiscal crisis. Here is an excerpt of some key points made in the latest issue of our newsletter.<\/p>\n<ul>\n<li>\u00a0The money supply is expanding at an alarming rate not just in the U.S. but around the world.\u00a0 The Federal Reserve, Alan Greenspan (former Chairman of the Fed), Bill Gross (manager of the world\u2019s largest mutual fund) and others have said that expanding the money supply leads to high inflation. Economist and <i>Aftershock<\/i> co-author David Wiedemer, PhD has said that this will lead to multi\u2010hundred percent inflation in the United States in the next ten years.<!--more--><\/li>\n<\/ul>\n<ul>\n<li>The national debt is now $16.7 trillion and increasing daily. If interest rates return to the 55 year average of 6.38%, interest on the $12.404 billion <i>net<\/i> national debt would\u00a0be $791 billion per year or 29% of the government\u2019s $2.712 trillion budgeted receipts (for the year 2013).<\/li>\n<\/ul>\n<ul>\n<li>The national debt, huge as it is, is not the biggest fiscal challenge facing the United States. The greatest fiscal challenge facing the country is the $60 trillion present value of future entitlement payments (Social Security, Medicare, federal pensions, etc.). The national debt plus the entitlements total $77 trillion. That is more than 4 times GDP ($16.2 trillion) and exceeds the annual economic activity of the entire world ($71.8 trillion). It is $243,000 for every man, woman and child in the U.S. ($77 trillion divided among 317 million).<\/li>\n<\/ul>\n<ul>\n<li>Today\u2019s stock market is not supported by fundamentals. It is bolstered by the Fed\u2019s quantitative easing. Quantitative easing must end at some point. When it does, it is likely to hurt stocks.<\/li>\n<\/ul>\n<ul>\n<li>Bonds are coming off a 30 year bull run in which interest rates recently hit lows. As interest rates increase, bond values will fall.<\/li>\n<\/ul>\n<ul>\n<li>How do you avoid losses if high inflation comes? If inflation increases, interest rates will rise. If interest rates increase dramatically, real estate and bond values will fall dramatically. Therefore, it may be wise to avoid stocks, bonds and real estate. Perhaps a diversified portfolio that includes, among other things, investments in precious metals including gold, platinum and silver, foreign currencies, funds that short stocks, and funds that short bonds may be the safest place to be until the current financial crisis passes.<\/li>\n<\/ul>\n<p>These are just some of the things investors should\u00a0be concerned about.\u00a0\u00a0Our newsletter goes into detail about the issues facing investors and what you can do to protect your wealth and secure your family\u2019s future. \u00a0\u00a0Contact me or <a href=\"http:\/\/www.kirbywealthmanagement.com\" target=\"_blank\">visit my website<\/a> for a free copy of the entire newsletter.<\/p>\n<p>To learn more about Jim Kirby, view his <a href=\"http:\/\/www.paladinregistry.com\/financial-advisor\/brea-california\/Jim.Kirby\" target=\"_blank\">Paladin Registry profile<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Debt, The Deficit, and Quantitative Easing Many people are aware of the fiscal crisis in Washington. Investment portfolios need to take into consideration macroeconomic trends and the risks of inflation that may result from the fiscal crisis. Here is an excerpt of some key points made in the latest issue of our newsletter. \u00a0The money supply is expanding at an alarming rate not just in the U.S. but around<\/p>\n","protected":false},"author":25,"featured_media":1937,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[117],"tags":[],"class_list":["post-1929","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Protecting Your Investments in an Inflationary Environment<\/title>\n<meta name=\"description\" content=\"Investment portfolios need to take into consideration macroeconomic trends and the risks of inflation that may result from a fiscal crisis.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.paladinregistry.com\/blog\/retirement\/protecting-your-investments-in-an-inflationary-environment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Protecting Your Investments in an Inflationary Environment\" \/>\n<meta property=\"og:description\" content=\"Investment portfolios need to take into consideration macroeconomic trends and the risks of inflation that may result from a fiscal crisis.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.paladinregistry.com\/blog\/retirement\/protecting-your-investments-in-an-inflationary-environment\/\" \/>\n<meta property=\"og:site_name\" content=\"Paladin Registry Blog\" \/>\n<meta property=\"article:published_time\" content=\"2013-11-18T14:31:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2015-11-03T23:52:47+00:00\" \/>\n<meta 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Many of his clients are either retired or close to retirement and need help sorting things out. He also helps small (and not-so-small) business owners lower their income taxes and determine the best way to transition their wealth to the next generation. With his background as a CPA, he looks for ways to help clients avoid or defer income taxes when selling large assets, such as real estate or a business. He became a Certified Public Accountant (CPA) in 1972, a Certified Financial Planner (CFP) in 1986, a Personal Financial Specialist (PFS) in 1988, and a Chartered Retirement Planning counselor (CRPC) in 2008. In addition, he is a Certified Fund Specialist, a designation granted to those who pursue a course of study and pass a test demonstrating their knowledge of mutual funds and modern portfolio theory. He is a fee-only advisor. I did a two year tour of duty as a radar operator in the Navy beginning in 1965. From 1970 to 1973, I worked for the national accounting firm of Arthur Young &amp; Company as an auditor. In 1978 I opened my CPA practice in Santa Ana. I introduced personal financial planning to my accounting practice in 1986. 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Many of his clients are either retired or close to retirement and need help sorting things out. He also helps small (and not-so-small) business owners lower their income taxes and determine the best way to transition their wealth to the next generation. With his background as a CPA, he looks for ways to help clients avoid or defer income taxes when selling large assets, such as real estate or a business. He became a Certified Public Accountant (CPA) in 1972, a Certified Financial Planner (CFP) in 1986, a Personal Financial Specialist (PFS) in 1988, and a Chartered Retirement Planning counselor (CRPC) in 2008. In addition, he is a Certified Fund Specialist, a designation granted to those who pursue a course of study and pass a test demonstrating their knowledge of mutual funds and modern portfolio theory. He is a fee-only advisor. I did a two year tour of duty as a radar operator in the Navy beginning in 1965. 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