Economic overheating could lead to massive inflation
If you look at all the obvious metrics, it may seem like the economy is in a good place and there is no reason to worry. Unemployment is at its lowest rate since 2000, wages are growing, and consumer optimism is higher than it’s been in years. However, there is a dangerous inflation trend that has many economists worried.
This article by Business Insider indicates that many economists believe that the economy may indeed be overheating, which could lead to massive inflation. Torsten Sløk, chief international economist at Deutsche Bank, told Business Insider “If you look at all of the indicators combined, you do get somewhat worried about the overall picture.”
Highest inflation rate increase in 5 years
One of the key indicators that the economy is overheating is the tight labor market. Most American workers see their greatest wage increases when they switch jobs, this is making it harder for employers to retain employees. Combining this with the fact that unemployment is so low means that a bidding war for employees could be inevitable. All of this may seem like it’s a good thing for the American worker, and that is correct! However, just because this is great for individual workers, it does not mean it’s great for your retirement accounts. Increased pressure on the job market and astronomical federal spending has led to the highest inflation increase in the past 5 years.
A Gold IRA provides a hedge against inflation
One way to combat inflation is to roll over a part of your portfolio into a Gold IRA. By adding precious metals to your retirement, you’re hedging against inflation and adding security to your retirement. It’s important to look behind the headlines at what’s really going on with the economy and protect yourself and your family. To find out more about investing in a Gold or Silver IRA, download our free gold and silver guide by clicking here.