Best investments for the Upcomming inflationary years?

Think very carefully about what inflation is. Deflation is still a bigger threat in the next year.

While our elected officials (and unelected ones...) are giving barrels of money to the financial companies that least deserve it, Americans have lost trillions in wealth from the housing bubble bursting and the stock market crashing. Also, unemployment is still increasing. All this points to less available money.

I don't see inflation (above 2%) until 2010 or farther. I think that once inflation starts, it will rocket, but there's no need to get on that ride early.

I really don't think we can measure how quickly inflation will happen this time, because this time there are so many different outcomes. Right now every one is consuming less and as a result companies are producing less. Obviously that is deflation. Our Savings rates are ascending to 10% I believe and that is adjusting from a negative savings rate. All the money being spent by the Govt. is trying to account for the 10% that we have all of sudden stopped spending. Global demand from emerging economies is starting to pick up, but I can't see any drastic pick up for a while. The only thing that could push us towards high inflation by summer is a sudden collapse in the dollar or a huge boom for the economy. I don't think either of those will happen at least till the end of the year.

Everyone knows that massive inflation will be a result of this though. TIP's will not be a favorable place as I believe they are based off of the CPI and those inflation numbers are manipulated. I have been buying Chinese and India Stocks as well as Gold and Silver. The Ag stocks will also be good in the longer term, but not right now. I also am buying some multi-national industrials like ETN and IR(although debt is worrysome). Oil stocks are attractive now too. BP is carrying a dividend yield of over 8% now and with inflation coming oil will be up again. Of course I still have some holdings that will do well if I'm wrong and everything turns out fine. Stocks like JPM, WFC and even AEO. Also the miners are very cheap right now to. AUY at $8 is a nice buy.

I feel there are two things you should look for today when investing in a stock. Make sure that the company you invest in is making some sort of profit and pays a dividend. Many of the consumer product companies like P & G fall into this category. I also believe the banking sector will once again be a good area for investment.

As for inflation, I feel that we are once again in a bubble situation. The Federal Government is doing everything it can to keep inflation down. But I feel doing this the way they are is creating a situation that will cause inflation to rise sharply near the end of this year. It will effect the stock market as some companies will be caught unprepared and their expenses will go up quickly dragging down their profits.

One good thing that will come out of higher inflation is that people who have enough cash on hand may be able to get decent rates for secured interest bearing accounts.

Best times would be most likely around June and July - vacations.

And no, we'll never learn our lesson. As one historian quoted, "history has quit talking to the general public, and is now talking to itself."

Believe it or not, history keeps on repeating because only few people like yourself and I have some level of education historically speaking. Otherwise, everyone would try hard to avoid such things. Most economists study economics only, but not history.

Sorry for going a bit off topic. As I said: history repeats itself. Invest around the summer since that will probably be the biggest inflation. History can repeat itself, so don't think it's not possible, because times haven't really changed much.

TIPS for your treasuries, that is an inflationary tool. Most stocks should rise in price with inflation, but cash will be diminished as the same 5 dollars purchased a combo meal will now only purchase half of a combo meal. Meaning it will cost 10 bucks for your hamburger and fries instead of the current 5 dollars.

Inflation will raise the housing value as a plus.

I would make food commodities a major component of a growth portfolio. Chemical fertilizers would one way to play the inflation thesis which seems to under debate. Frankly, I agree with your assessment that inflation is set to explode. Many academics see it differently. Just the same, I am trying to build a portfolio that is 70 percent grains, fertilizers, industrial metals (copper) and precious metals (gold). Yes the feel is the 1970s economy of high inflation and high unemployment.