Worried About Inflation? Consider This Real Estate Stock
Last week, the Labor Department reported that the consumer price index (CPI) for the month of August was up 5.3% year over year. The CPI is a measure of how prices for certain consumer goods have changed, and this year we've seen some of its highest readings in nearly 13 years.
While CPI came in slightly below economists' expectation of 5.4% and was down from July's reading, inflation is still above what investors have grown accustomed to over the past decade. Federal Reserve officials say this inflationary pressure is likely temporary, but we have seen CPI readings over 5% for five months in a row now, and it's hard to say if inflation pressures will alleviate any time soon.
As investors, this makes positioning your portfolio a tricky matter. I think the best thing investors can do is invest in solid businesses that could also perform well in inflationary environments. One area that could do well if inflation stays high is real estate, specifically multifamily real estate. One company that has a strong track record of success and is positioned for long-term growth is multifamily lender Walker & Dunlop (NYSE: WD).
Source Fool.com
