For every worry investors have, there’s a solution.
The Investor Education Fund – they run the GetSmarterAboutMoney.ca website - commissioned a survey recently that asked investors what made them most nervous. Here are the top five answers, with some ideas on how to find some peace of mind.
Interesting to see this crop up as the top worry, given that inflation has been tame for years. Investors, quite sensibly, seem to be worried about a snap back at some point. Owning stocks is an obvious way to prepare – if prices rise, then corporate earnings should do likewise. Commodity stocks, which now comprise about 37 per cent of the S&P/TSX composite index, would do particularly well in an inflationary world. Another thought is to own real-return bonds, which adjust their interest payments and the amount you get on maturity if inflation flares.