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Commodities, and specifically oil and industrial metals, are typically considered hedges against inflation because they are finite assets that often experience increased demand. This is likely because the market is pricing in the impacts of rising inflation given the high likelihood of a $2 trillion green energy and infrastructure package being passed. Like commodities, income-producing real estate is impacted by supply and demand given the rising and potentially prohibitive costs of construction. In fact, over the last 25 years, the net operating income of the commercial real estate benchmark has substantially outpaced inflation.

In short, a SPAC is a company formed by investors, or sponsors, with no purpose other than raising capital through an initial public offering (IPO) in order to acquire an existing company. Once a target company is decided and funds are in place, the SPAC merges with the target company to become public. notice is the sale price of the SPAC target company, which can be up to 20% more compared to a private equity deal. Lastly, because they operate on a tight timeline and must find a target within two years, critics say that the sponsors may not be properly incentivized to find the best possible deal for their investors.

For example, if an investor shorts a stock trading at $10 and that stock price drops to $4, their profit is $6. As the price increased, the hedge funds, who had been shorting the stock, began facing enormous losses and receiving margin calls on their accounts – meaning they were being forced by their custodian to close out their short positions (by buying shares of GameStop) because they no longer had enough borrowing power available to hold the short positions. As a Certified Financial Planner™ professional, David designs comprehensive financial roadmaps to help clients reach their retirement and wealth-building goals. As a Certified Financial Planner™ professional, David designs comprehensive financial roadmaps to help clients reach their retirement and wealth-building goals.

What’s fueling bitcoin’s recent demand is its anonymity as the gold standard for online, discreet payments. Between the speculation of high returns and loose regulations from the federal government, bitcoin has caught on quick and particularly with young investors. Furthermore, it’s become the go-to payment for international purchases (replacing travelers checks) and large companies like PayPal, Square and JPMorgan have trailblazed institutional adoption of the cryptocurrency. Pro tip: With blockchain technology enabling the use of bitcoin, blockchain exchange traded funds (ETFs) are often a good place to start and can be considered for retirement accounts like a 401(k) or IRA