投资捷径与陷阱(4)

For that reason, it's smart to have a portion of your fixed-income investments in Treasury inflation-protected securities, or TIPS. These bonds are backed by the U. S. government, like normal Treasury papers, but also have built-in protections that boost returns to account for inflation.

Another inflation-hedging strategy is to invest in commodities. When growth resumes, demand for oil, copper and other commodities will rise, making their prices increase. A warning, though: Given the volatility of commodities, financial planners recommend that investors have no more than 5% to 10% of their portfolio in this sector.

Four. Have a Stock-Market Strategy Despite the recent sprint in share prices, investors remain leery of the stock market.

It will take more than a four-week rally to soothe the pain caused by the stock market since it tumbled from its late-2007 highs. When so much doubt surrounds the stock market, it's usually a time to think about investing in equities.

Despite the horrid pain most of us have suffered in the market during the past 18 months, stocks, like the economy, will not remain down forever.