As an income investor, should you be worried about inflation? You bet. On an annual basis, prices were up 2.7% in March. That’s the highest mark since December 2009. Cotton prices are up more than 170% in the past year. Oil had increased by 40% through mid-April. Copper, corn and wheat prices registered double-digit gains in the first three months of 2011 alone, from the same period last year. In the past six months, Kraft (NYSE: KFT), Kellogg’s (NYSE: K) and McDonald’s (NYSE: MCD) have all… Read More
As an income investor, should you be worried about inflation? You bet. On an annual basis, prices were up 2.7% in March. That’s the highest mark since December 2009. Cotton prices are up more than 170% in the past year. Oil had increased by 40% through mid-April. Copper, corn and wheat prices registered double-digit gains in the first three months of 2011 alone, from the same period last year. In the past six months, Kraft (NYSE: KFT), Kellogg’s (NYSE: K) and McDonald’s (NYSE: MCD) have all put through price increases to consumers. Nike (NYSE: NKE) and Whirlpool (NYSE: WHR) have done the same. Wal-Mart (NYSE: WMT) CEO Bill Simon has said he thinks inflation “is going to be serious.” He warned that recent transportation-related cost hikes will be passed through to shoppers. This means the amount of income you’re earning may not keep pace with how much prices are rising — especially if you are retired and living on a fixed income. If you own long-term bonds, such as 30-year U.S. Read More