How investors can protect themselves from rising prices

Image by Steve Bidmead from Pixabay. Article by Paul R. La Monica, CNN Business. CNN Business – May 13, 2021.

New York (CNN Business) – Inflation is all that the market seems to care about these days. Wages are rising, consumer prices are surging — and investors are worried the Federal Reserve will raise interest rates faster than expected to keep inflation in check.

So what’s an investor to do? The S&P 500 is down more than 2% in the past week and the Nasdaq has fallen more than 4%, even with stocks rebounding Thursday. The CNN Business Fear & Greed Index, which measures overall market sentiment, also slid into Fear territory Wednesday.

Experts say there are a few options for investors looking to hedge against rising prices.

The classic choice is gold, which is often viewed as a means for investors to protect their portfolios from inflation. Indeed, gold hasn’t fallen nearly as much as stocks this week. That could be a sign that gold will continue to hold up better than the rest of the market if inflation continues to be an issue -— which some experts believe will be the case. […]

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