Do This Before the Fed’s Meeting Next Week

Amanda Heckman|March 12, 2022

Make the most of your dollars while you can… because they’re fast disappearing.

The latest inflation numbers came out this week… and, boy, does Jay Powell have his work cut out for him.

It’s more proof of what we’ve been saying all along…

You can’t print trillions of dollars without consequence…

But, more importantly, the Fed now has nowhere to turn…

That’s why it’s more important than ever that you make a move with your money.

A Tough Job

Inflation hit a new 40-year high in February… outgunning the high that had been set just a month earlier.

Inflation was everywhere… from housing costs (up 4.7% year over year) and grocery prices (up 8.6%) to gas prices (up a hair-raising 38%) and used cars (up an astonishing 41%).

This spike, coming ahead of Jay Powell’s Fed meeting next week, means his job is tougher than ever.

Late last year, he promised more aggressive rate hikes to combat inflation (of his own making). The markets sank on the repeated threats.

But thanks to the crisis in Ukraine, he has backed off that promise. Last week, he suggested a smaller hike would be coming in order to avoid causing more stress on the markets.

But a 25-basis-point hike won’t do a blessed thing when inflation’s surging, eating away at your dollars and making everything cost more.

So Powell’s damned if he does… and damned if he doesn’t.

And so is your cash… if you don’t do something about it.

A Wise Play

It’s simple, really. As Andy told you on Wednesday, “The only way to beat inflation is to not just stay in the markets, but wisely play the markets.”

Right now, the wise plays are in certain sectors of the markets… plus gold and crypto.

In that same essay, Andy showed you how to play rising prices with corn and soybean exchange-traded funds…

Then, on Friday, Alpesh shared in his Stock of the Week video a company in the defense sector that looks good right now with military spending ramping up…

But don’t overlook gold.

It’s quickly nearing all-time highs again as investors flock to safety. Concerns over Russia and inflation have led to a 9% gain in the yellow metal in just the past month.

And crypto is again enjoying tailwinds. First, the trouble in Ukraine sent investors running to the privacy and protection of the non-cash asset…

Then the sector got a boost this week from the news that President Biden signed an executive order on digital currencies.

He called for the government to examine the benefits and risks of crypto. He also wants to see sound regulation and oversight in the sector.

The news – and the promise of legal clarity – sent Bitcoin and its friends soaring.

But one corner of the crypto market is doing even better: gold-backed cryptos.

This sector just hit a $1 billion market cap for the first time.

One of the more interesting plays on this unique asset class is Pax Gold (PAXG). It’s a trust that is regulated by the New York State Department of Financial Services. This relationship ensures that each PAX Gold token in circulation is 100% backed by an ounce of gold.

And this play on the idea of safe speculation is beating Bitcoin so far this year.

There are many attractive places to put your money as Jay Powell struggles to solve his inflation problem.

But while he peers out from his spot between a rock and hard place…

Don’t let inflation destroy your dollars.

Note: We mentioned gold-backed crypto above… but did you know there’s a way you can use gold for your everyday purchases? It’s another unique play on gold that could help you protect your money from inflation and whatever else the Fed could have planned for next week. Get the details here.