Investing in S & P 500 and the goods will be a wise idea to grow your wallet on the clock, but there could be difficult times, which can be lower your portfolio as pronounced in the case of a financial meltdown in 2008. Those times more than the S & P and right near the old highs and the Nasdaq composite is at 13-year highs and sold off the commodity markets in recent weeks, only to fall back on news that the Fed will continue to print money.
The main rule here is to stick with them even through the bad times and remember this is a long-term investment and should be treated as such. One of the main concerns with investors in America is the fact that the dollar is still in a downtrend and continues to decline over time as a result of printing money the government and many of the stimulus packages that were not worked and swelled the debt to more than $16 trillion, which is still at an all time high. Remember slow and steady wins the race over a long period of time.
This is why we recommend people to invest a small portion of their portfolio to be able to protect yourself against inflation or a general rise in the price of gold, oil, and all the other daily commodities that affect everyone when they buy gas or groceries. If you think that this economy in the next 1-2 years will improve the unemployment rate will continue to decline than you think that commodity prices caused inflation will rise in the pump and in the grocery store.
Fed and printed a lot of money in the end lead price inflation plus population growth, which reached 7 billion keeps late last year, supplies circumstances are relatively low and economic development in China and India have improved and they are buying corn, beans, cotton, silver, and many of the other commodities that were not buying 15 years ago.
If you continue to the value of your dollar to head lower and continue to commodity prices to rise you will have to invest in a way that it can take more than the rate of inflation and devaluation of the dollar and the way to achieve this is to buy a basket of goods, or those that are identified such as gold, silver and crude oil.
At the time I am writing this article when unleaded gasoline in Chicago is $4.00 a gallon at the pumps, crude oil has reached only 107 dollars per barrel with gold in the 1,400 crowd 200$ recently dollars with the dollar traded around 81.30 continuation of the bearish trend .
A good way to hedge against this kind of scenario is to buy futures contracts on commodities or buy gold or silver bullion and keep them over time to hedge against inflation for you. Are traded futures and options in Chicago in continuing medical education, which stands on the Chicago Mercantile Exchange, which is the largest commodity exchange in the world. The contracts are traded crude oil futures and gold in New York on various stock exchanges.