Total Returns %

1 Week

YTD

Dow Jones Industrial Average

+2.43%

+10.65%

NASDAQ Composite

+1.89%

+8.32%

S&P 500 Index

+1.96%

+8.43%

Russell 2000

+2.32%

+10.42%

U.S. Aggregate Bond Index

+0.66%

+0.67%

MSCI All Country World

+2.47%

+8.29%

Source: Yahoo! Finance.  Data through 4-29-11

The final week of April finished on a high note, making April the best month for stocks year-to-date.  The strong performance was the result of strong corporate earnings, continued low interest rates, and strong performance from small-company stocks and commodities.  The Dow had its highest close since May 2008, and is now less than 10% from its record close set in October 2007.

The past week also saw a historic event as Ben Bernanke held a Q&A with the media.  Mr. Bernanke reported that the Fed expects inflation to remain in the 2.1-2.8 percent range in 2011, and then drop to 1.4-2.0 percent in 2012.  However, I don’t think I’m the only one that has already been feeling the effects of inflation much higher than 2.7%.  This NY Times article does a great job of showing the inflation of energy and food prices.  I’ve also found this website interesting as it shows inflation reported the way the government used to report it in 1980, versus how it is reported today.  If it were reported under the system used in 1980, the current inflation rate would be over 10% versus the 2.7% that is currently being reported by the government.

It is more important now than ever to make sure that your portfolio is positioned for a high-inflation environment, if it isn’t already.  Ways to protect your portfolio from inflation would be to invest in precious metals (gold/silver), energy, commodities, and floating rate bond securities.

Do you have investments that will hedge your portfolio against high inflation?  Call me to schedule a free review of your current investment portfolio – 913.693.7918.

John P. Chladek, MBA, CFP® is the President of Chladek Wealth Management, LLC, a fee-only financial planning and investment management firm specializing in helping families and couples who are not yet retired realize their financial goals.  For more information, visit https://www.chladekwealth.com.

All written content on this site is for information purposes only.  Opinions expressed herein are solely those of John P. Chladek, MBA, CFP®, President, Chladek Wealth Management, LLC.  Material presented is believed to be from reliable sources and we make no representations as to its accuracy or completeness.  All information and ideas should be discussed in detail with your individual advisor prior to implementation.  Investment Advisory services are offered by Chladek Wealth Management, LLC, a registered investment advisory firm in the State of Kansas.  The presence of this web site on the Internet shall in no direct or indirect way be construed or interpreted as a solicitation to sell or offer to sell investment advisory services to any residents of any state other than the State of Kansas or where otherwise legally permitted.