Inflation rears its ugly head from time to time. If you track the MAS statistics on inflation or just tune to the headlines from the mainstream media. You will realise that it’s about 4.5% for May 2011.
It’s sometimes scary to think that every dollar you save in your bank savings accounts gives you 0.10% to 0.30% or so per annum. Thus, our savings are technically losing their real value of 4%+ every year if we do nothing.
So what can you do against inflation?
Should you run out and buy any blue-chip index stock on SGX to hedge against inflation? Or should you go out and buy a property as a hedge against inflation?
Inflation is here to stay
The hard truth that we don’t like but face everyday is that the cost of living rises over time. We face it when the same $2.50 ...
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