Despite the Wall Street happy talk about the Federal Reserve winning the battle against inflation, that battle has not been won. Headline CPI was 3.4 per cent in December. That compares to 3.1% in November and 3.0% last June. In other words, inflation is not gone and may even be on the rise with higher oil prices lately due to geopolitical concerns. The Fed will not raise rates, but they will not be quick to cut them given continued inflation.
Inflation has a way of sneaking up on investors in small increments and can do a lot of damage before investors see it for what it is. Sure, 3.4 per cent inflation is a lot better than 9 per cent inflation. But a 3.4 per cent inflation rate cuts the value of a dollar in half in 21 years and half again in another 21 years. That’s a 75 per cent dollar devaluation in just 42 years or the course of a typical career from age 23 to age 65. That’s one of the main reasons I recommend gold. Gold is priced in dollars. Inflation means the dollar is worth less in terms of purchasing power. That means it takes more dollars to buy gold, so the dollar price of gold goes up.
What you may lose in the rest of your portfolio in terms of dollar purchasing power is made up in part or all from the profits you make on the higher dollar price of gold. Owning gold will protect you from the ravages of inflation. You’ll have your inflation protection in place 24/7 and won’t be caught off-guard.
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Denne historien er fra March 2024-utgaven av Indian Economy & Market.
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Denne historien er fra March 2024-utgaven av Indian Economy & Market.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
NEW INVESTMENT PRODUCT CATEGORY IS SEBI'S LATEST MOVE COMMENDABLE?
The Securities and Exchange Board of India (SEBI) has introduced a consultation paper proposing a new investment product category aimed at addressing a specific market need. This proposed asset class would offer investment options that sit between mutual funds (MFS) and PMS, filling a gap and providing greater flexibility in portfolio management. The new investment vehicle is designed for investors who are prepared to take on riskier market positions but find PMS schemes or AIFs out of reach. SEBI after reviewing the feedback and finalizing the regulations through stakeholder discussions, may issue the final regulations.
DECODING THE CHINA MYTH
Myths die hard. Among these is the great myth that China's poised to take over the world. Here, James Rickards debunks that myth.
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Until the 2014 Lok Sabha elections, when the Bharatiya Janata Party secured 282 seats and Narendra Modi ascended to power, India experienced 21 years of coalition governments. A decade later, the BJP holds 240 seats in the Lok Sabha, and India is once again governed by a coalition. Fitch has indicated that coalition politics and a weakened mandate for the NDA could hinder the passage of ambitious reform legislation. It raises the question: Do coalition governments impede the economic reform agenda?
Transforming The Indian Stock Market
With a rising number of millennials, Gen Z investors, and tech-savvy traditional investors, Robo advisors are making a significant impact on the FinTech and WealthTech sectors. Factors like growing per capita income, favourable demographics, and increasing smartphone and internet Usage further enhance India’s potential as a robust market. Al’s role in stock market analysis is unquestionably growing. It enhances rather than replaces human judgment, providing powerful tools for informed investment decisions.
Rudra Global Infra Products Ltd.
READY FOR EXPONENTIAL GROWTH WITH ENTRY INTO AEROSPACE & DEFENCE SECTOR
Dividend Powerhouses Best 5 Stocks for Yield and Growth
Enhance your investment strategy in these volatile times with these highyield dividend stocks known for their strong performance and reliability.
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\"We believe ourselves to be service providers and not any goods manufacturer\"
THE REALITY OF CORPORATE ESG INITIATIVES
Today, environmental, social, and governance (ESG) considerations dominate business discussions and have become an integral part of the strategies of many organisations in different industries. While some companies are grappling with these new standards and commitments, others, already aligned with the Sustainable Development Goals (SDGs), are well prepared to meet the evolving regulations and standards related to corporate social responsibility (CSR) and ESG.
Standard Capital Markets Ltd. Incorporates Subsidiary for Insurance Broking
Standard Capital Markets Ltd., a leading player in the financial services sector, has announced that it has incorporated a subsidiary under the name of “Standard Insurance Broking Ltd.” to act as a Direct broker under the Insurance Regulatory and Development Authority of India (Insurance Brokers) Regulations, 2018.NOC of Insurance Regulatory and Development Authority of India already taken and now company will also apply for taking Insurance Broking License of Insurance Regulatory and Development Authority of India (IRDAI).
THE IMMINENT MIDDLE EAST WAR
Recent intelligence from a variety of sources points to an Israeli war against Hezbollah, which is an Iranian proxy. Hezbollah is systematically attacking Israeli bases, radars, intelligence-collections facilities and other defense system components. Now the attacks are spreading to include Israeli settlements in the West Bank and Galilee. You’re just not hearing about it in the mainstream media. These attacks have three effects: They break down Israeli military and intelligence systems, terrorize the civilian population and handicap Israel’s ability to conduct air attacks on Syria or Lebanon. James Rickards points out why all these are imminent.
