Kiplinger

Should You Invest in Commodities?

The market has again reminded us that stocks can move in two directions. It's an old story but easy to forget: When inflation expectations rise, so do interest rates--and stock and bond prices fall. For the first time in five years, the consumer price index in 2017 registered an annual increase of more than 2%, and prices rose more than expected in January. The January jobs report showed a jump in wages.

Inflation has yet to reach worrisome levels, but the stock market dropped sharply after each sighting, with investors worried that the Federal Reserve would start aggressively raising short-term interest rates--something we have not seen in a long time. (Through the end of 2017, the Fed had raised rates by a total of just 1.25

You're reading a preview, sign up to read more.

More from Kiplinger

Kiplinger10 min read
13 Super Small-Cap Stocks to Buy for 2020 and Beyond
Small-cap stocks lagged the S&P 500 by a wide margin last year. However, strategists say these smaller companies are set to catch up (and more) in 2020. "We see three favorable factors in place for small-cap stocks: a slow economy, an accommodative F
Kiplinger25 min read
30 Massive Dividend Increases From the Past Year
The S&P 500's dividend stocks provided shareholders with an average payout boost of more than 8% in 2019. However, a number of outstanding companies announced far more substantial dividend increases - 20%, 30% or more. In a few cases, companies more
Kiplinger4 min read
Why I Love Annuities, and So Should You
If you need reliable, guaranteed retirement income, annuities can be one of your best options. Why do I say that? For one thing, annuities can act as a hedge against longevity risk -- the possibility that you will outlive your money. People are livi