Inflation says the headlines today

Worst since 1991 it goes on to say. Shocked and dismayed cry the pundits...Is not the feds in control of inflation they ask.

Truth is, the feds are the ones that create inflation. It does not just grow and need to be trimmed back each fall. It is a direct result of too much fiat currency. Every time a public figure throws my hard earned money at a problem, that is inflation.

You can either listen to your broker and believe stocks will come back because they always do and go about your business, or you can start to take charge of your finances.

Bonds will get hit as the feds (as usual) will follow the interest rates higher. I know you have been taught that the feds control rates, but that is fantasy.

Corporations will get squeezed between raising costs and trying to raise prices. this will erode profits. Will anyone pay todays price for a company that is not going to earn as much down the road? Of course not so stocks will continue to fall.

Real Estate normally would rebound in this type of environment, however since Real Estate is the symptom of loose credit, it too has a way to go of contracting.

In my view that leaves only one asset that will even keep up with inflation and you already know what that is.

10 years from now most folks will know about commodities like they do mutual funds. Why not get involved now and be one of the smart investors that will reap windfalls in the next few years.

One of the best ways I know is through leverage. However I hate to take on risk. You say then how can you leverage without risk taking. Technically you cannot. But you can manage the risks like the insurance industry does.

This takes this article to where we are now. Long term options for the growth potential, followed by selling short term options to counter the dangers of time decay.

If you can time when these natural resource markets are going to turn and run followed by the always present corrections, then you will come out far better than me. But 30 years of trading tells me I cannot accomplish this feat therefore I just want to make sure that I am there when the market is moving