Originally Posted by La literatura
Great point. How has the inflation rate been recently? How quickly does it fluctuate? How predictable is it (and does predictability help an average investor)?
Inflation has been <5% for many years now. The risk is that the value of the dollar is becoming increasingly worthless due to the Fed pumping cash into the system for a long while. There is an overhanging threat of dramatically increased inflation in the long run if this continues.
That is why people like BEP and TJ are so into gold. In theory it's an inflation hedge. There are many other inflation hedges, including the far simpler inflation protection type index funds.
"I love signature blocks on the Internet. I get to put whatever the hell I want in quotes, pick a pretend author, and bang, it's like he really said it." George Washington