Fidelity Investments urges its investors to protect against inflation

Fidelity Investments is encouraging its retail investors to position their portfolios for inflation. Received via e-mail this morning:

Inflation is important to every investor because it erodes the purchasing power of your savings. While we’re not experiencing rising inflation today, many economists see it as a very real threat in the future. Now may be the time to adjust your portfolio to help protect yourself from its effects, before it arrives.

See how inflation affects you

One way to help lessen the impact of inflation is by investing in asset categories that historically have held up better in times of high or rising inflation — including commodities, real estate, and inflation-protected debt securities. Fidelity offers several funds you may want to consider:

  • Fidelity Inflation-Protected Bond Fund1 (FINPX) – Seeks a total return that exceeds the rate of inflation over the long term by investing in inflation-protected debt securities of all types, including Treasury Inflation-Protected Securities.
  • Fidelity Strategic Real Return Fund2 (FSRRX) – Seeks real return consistent with risk by investing in a mix of inflation-protected debt securities, floating-rate loans, commodity-linked notes and related investments, REITs and real estate related investments.
  • Fidelity Global Commodity Stock Fund3 (FFGCX) – Seeks capital appreciation by investing in stocks of commodity-producing companies across the energy, metals, and agriculture sectors.

Diversify your portfolio

Now is a good time to evaluate your portfolio to see if you have the appropriate investments to help you deal with the threat of inflation. Fidelity can help. Go to Fidelity.com/fightinflation. Or call 800.FIDELITY.

Exit question: Does this mean retail investors will give “reflation” investments a boost or is this e-mail a sign of a top in those investments?

Advertisements


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s