
After staying below 3% since 2012, inflation leapt up above 5% earlier this year. Although the most recent reading in August showed a tiny slowdown, consumer prices are rising fast enough to make many investors nervous.
Inflation is an investor's adversary because it offsets investment growth. Say your portfolio grows 10% over 12 months. If inflation in that time is 5.25%, it pulls down the net growth of your purchasing power from 10% to 4.75%. With weaker investment growth, a high inflation rate could even swing your net returns into negative territory.
You can't eliminate the effects of inflation, but you can take steps to manage them. Here are 10 strategies to consider.
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