The Consumer Price Index DROPPED 0.7% in December 2008.

That’s a marked departure from the gains we had been seeing. Even if you exclude food and gas prices, consumer prices were still flat for the month.

What’s more, the full-year data showed consumer prices rose a paltry 0.1% vs. a whopping 4.1% jump in 2007.
In fact, 2008 saw the lowest rate of inflation since 1954, when prices declined 0.7%.

With the continued job losses and curtailed consumer spending, you can expect to see further price weakness in the next round of data, too.

Find how your investing in dividends strategy may need to suite this inflation period.

To your dividend investing success,

InvestingInDividends.com

As far as most investors are concerned, there are really only three basic investment categories — stocks, bonds, and cash equivalents. Commodities, currencies, and a few other “alternative assets” round out the bigger list.

Yet even with just these few choices, it’s a challenge to figure out how much of your money should go to each.
One traditional rule of thumb says to subtract your age from 100. The resulting answer determines the percentage of stocks that should be in your portfolio.

For example, a 40-year-old investor would allocate 60% to equities.
The obvious idea here is that the longer you have until retirement, the more aggressive you can be with your portfolio.

Since stocks are historically more volatile — but also better able to outpace inflation over long periods — they deserve the lion’s share of a younger investor’s nest egg.

Learn more about investing in dividends and how to determining what should be in your retirement portfolio.

To your dividend investing success,

InvestingInDividends.com