8 Dividend Champion Inflation Proof Plays

Inflation seems tamed as the core inflation rate is growing a mere 1.1 percent annually and consumer prices rose only 2.1 percent over the year according to the most recent data out in February. Even so, inflows of cash have been gushing into funds that invest in customary inflation plays. These funds include Treasury inflation-protected securities, stocks, and commodities. Morningstar’s Editorial Director Kevin McDevitt, CFA, stated (pdf): “Long-term flows roared back in January with nearly $30 billion in estimated inflows, reversing December's $10.6 billion outflow. U.S. stock funds led the surge with nearly $16 billion in inflows, with U.S. stock exchange-traded funds collecting another $10 billion. This is the biggest haul for open-end U.S. stock funds since February 2006 and the best January since 2004. It also reverses eight consecutive months of outflows. Conversely, nearly $76 billion fled money market funds, the majority of which left taxable funds. This was... Read more