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Wall Financial Group CEO Michael Wall on how investors can adjust their portfolios to take advantage of a potential rise in inflation.
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-- this for a while on the Federal Reserve confirmed it once again this week after its meeting the Fed plans to keep interest rates low through -- 2015.
-- And the Fed isn't worried about inflation over the long run a little bit of worry about short term gasoline prices but over the long term not really.
However we've got -- money manager who says the risk of inflation is quote huge.
And he's got three top ways he says you can play -- Michael wallop while financial as the CEO and he joins us now -- Fox Business exclusive little -- inflation card game here but before we do what.
Let me play devil's advocate.
And you know what about -- a year and a half ago wrote a column saying it.
Inflation has got to be coming because with all the stimulus and all of the TARP -- the money that's been put into the system at some point it will happen he just didn't know plan.
We haven't seen it meaningfully happen.
And wages have pretty much kept pace with anything that's going on so what point on the calendar we talking about here.
You know good to see -- -- you know I think I don't know that there's a particular point you can play for I definitely think it's gonna happen I mean.
Quite honestly what is inflation in its basic terms of the cost of things getting greater -- you know as we look over time you mention about gas and that sort of thing oil.
-- we've definitely seen that happen and I think we're gonna continue to see that as you mentioned about printing of money.
You know there's never been a -- we -- where we haven't printed money in the past -- inflation to follow so I think preparing for earlier is a good bet.
OK so that's fine we we we like to be ahead of the game definitely let the let's talk about how to actually play this and there are three cards that you say give people winning hand -- let's start with the very first one.
Three specific ways to invest to prepare for what you believe is inflation that's coming take the number one.
-- up yet I you know I like the actual idea of physical medical -- gold not medical gold silver that's sort of everybody that we -- Yeah everybody needs medical right but physical gold medal and silver that kinda thing what it's gotta do you know it's like anything else -- more dollars a minute.
A fear goes up in the costs in the value of the dollar goes down.
And you know gold and silver been around for ages and I believe they're always gonna be around and I like the idea of the physical mental and in what they're Marla unseen opened points.
What that was -- attacks or.
Yeah I really like buying it from the mid in calling slits in the reason -- like that is because.
You know play a real god -- -- situation where America doesn't have the great future we think it will.
At least those points can be used in addition.
Obviously -- they have value but it can also be used in addition -- legal tender so I like Lowell -- having -- conference.
-- -- sound -- my data after the Holocaust refugees that it.
When the Nazis come marching on the -- -- -- -- LA they won't take dollar bills.
Is is a little bit of a dramatic scenario.
Well it can be but you know at the end of the day.
It I don't think it hurts to have some and anything phase of the game and remember what we're talking about here's what I sell and brought that about selling a house sell the car so everything we're just about a little piece okay let's get to -- second card of the way to play the inflation game you say it real estate.
Yeah yeah and in particular physical real estate buying properties -- -- in Florida right now and in this market for example.
Not just here but other countries in the world we've seen.
The you know costs values of homes plummet.
Over the years obviously and now is a great time to -- -- in particular what I think's important is when you take a look at the real estate you loan.
There's a greater demand for renting because -- are being harder and harder to you know get a loan and all it does with that -- I think it's a great place to take a look at your own personal -- and saying you know I might buy a piece a real estate here or there.
Hoping the value of that real State's gonna go up number one and number two you have the ability to have -- and I know we're seeing in this market.
You know a lot of people just in on season you're seeing anywhere between seven to 12151000.
Dollars a month in rent.
On a property and so you know sometimes the -- can really work.
Don't buy distressed property fix it up you get a little bit of income their your third -- as we deal without and we -- it is something that involves managed futures.
And you call this the Indian tax am -- pronouncing that correctly.
It's it's -- TVI he and it's actually something that is that the neat thing about this play Liz is you can buy it through security benefits actually in the structure of an annuity but.
If you look at it's -- managed futures index which is what you mentioned investing in a variety of different things and -- anything about it.
If you actually look at the back tested numbered if you would have -- this if you will.
In the last worst ten years it would -- average a little over four and a half percent the best ten years.
Doing the math back testing is little over eight and a half percent in the neat thing about at all.
Is there zero risk your principal so again for a piece of of the situation might be something to look at.
As far some diversity and have some play that way for the future.
Three ways to play the inflation car Michael -- thank you so much we're gonna put all of these ideas on our FaceBook page for after the bell but thank you so much and and -- good -- what -- freezers do you have.
We wanted to preserve twelve freezers in a bomb shelter -- You know I the only reason I have three feet of phrases is because I have four kids and that they eat a lot of they -- a lot of good one last tip don't buy real estate in a hurricane packing no it quite right afterwards -- good yes.
-- you might help thank you for the idea good to see you David over the.
