I’m amazed by the US’s fearfulness of a 7-8% temporary inflation rate.
Inflation doesn’t mean chaos, businesses shutting down. This is a temporary economic cycle that‘s being carefully overseeing by the most brilliant minds in the US and in the world.
If Sears, Bed Bath & Beyond, and companies as such irreparably fail, it won’t be because of inflation Itself. Companies fail all the time for several reasons.
In my opinion, this is a unique time for those 10-15 years away from retirement to enjoy and harvest the fruits of their savings and sacrifice over a number of years.
There are some great high yield opportunities: Ford, GM, several big banks, T-mobile, asset-backed Carnival Cruise Line bonds, and many others. Even Government Sponsored Entities are yielding 5-6%.
Do you really believe Tesla is going to win over Ford? Do you really believe Carnival will set a sail with empty ships? Inflation in itself will not cause a sound business to go sour.
Do you research as you shoul, but don’t miss these great times to enjoy a juicy return on your fixed income investments.
Many would recommend buying Ford’s stock while cautioning on the purchase of its bonds. Go figure!
Do you really think the financial sector wil not benefit from higher interest rates? Look at Ally’s and Synchrony bonds