Novel investment idea to hedge inflation ! ;-)
Joy, etc. please comment! Here in the US, gov spending is running unimpeded. My fear is that there will be unimpeded inflation to pay for all the frenetic bailout and welfare spending.
With some good cash in the bank drawing a whopping 2% intrest, even if I renew these as intrest climbs with inflation (assumption), I will be hard pressed to keep up.
Sure I could go the equities route, and lose even more, but my appetite for equity markets has waned.
Here is my idea: Real Estate, specifically a larger, more expensive primary residence purchased at at at a great price, which are available now. Take that cash from the CD's, and put it into a more expensive house, keeping the debt amount about the same, and then selling (down size) as the market improves, maybe in 4-5 years. There would not be capital gains (after 2 yrs.), so essentially your investment profit would not be taxed, like selling gold (another popular option to beat inflation). Also, instead of staring at your bar of gold or you bank statement, you are living in your investment, which as gold has tangible value.
Other than not being "liquid", what am I not seeing.