Best Columns: Eyeing inflation, Investing in optimism
The economy is heading
Betting against hope
The economy is heading “in an ominous direction,” says Fred W. Frailey in Kiplinger.com. We’re looking at a “huge burst of inflation” on the horizon, as booming economies like China, India, and Brazil are scooping up “prodigious amounts of raw materials” to essentially “live as we do in the U.S.” And it isn’t a commodities “bubble,” as some argue. It is the reality of more people bidding for increasingly “scarce resources.” This “rumbling” of inflation could explode “like a vocano” and wipe out your retirement savings. What to do? Well, “if commodities are fueling inflation, invest in them.”
Betting on hope
True, “the economy is in trouble,” says Money’s Michael Sivy in CNNMoney.com, and the news from Wall Street is “unsettling in the extreme.” But there are reasons for optimism. Despite well-publicized prognostications from the “predictors of doom,” most forecasters are relatively upbeat about the future. If you agree with this “reasonable, though by no means surefire” optimism, you should invest before the market rebounds. Many investors like commodity stocks and “foreign blue-chip mutual funds,” but “following the crowd only leaves you poorer.” Better to “pick up bargains among the strongest U.S. stocks,” especially those that earn much of their money overseas.
THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER
MOST POPULAR ON THE WEEK
- Why is the Pentagon stuffing caves in Norway full of tanks?
- 43 TV shows to watch in 2014
- The one thing the New Atheists get right about religion
- Syrian women know how to defeat ISIS
- How to be the most productive person in your office — and still get home by 5:30 p.m.
- 5 baffling foreign-language versions of the Fresh Prince of Bel-Air theme song
- 3 horrific inaccuracies in Homeland's depiction of Islamabad
- The uncomfortable truth in The Giving Tree
- The U.S. is about to sell weapons to Vietnam. That's bad news for China.
- The simple trick to making better decisions in every aspect of life
Subscribe to the Week