| In today's unpredictable global economy, you | | | | Well, it seems that you probably can't avoid inflation, |
| obviously never know what is going to happen next. | | | | but there are definitely opportunities that you can |
| Uncertainties and concerns regarding the Iraqi threat, | | | | take advantage of, in order to keep up with it. One |
| North Korean crisis, and hidden terrorist cells and | | | | option might be to consider depositing your money |
| networks continue to loom in the back of the minds | | | | into a savings account rather than a money market |
| of consumers. Moreover, the stock markets and | | | | account. Most major banks are currently yielding an |
| industries around the world. | | | | Annual Percentage Yield (APY) that ranges from |
| Price inflation is another major concern for everyone. | | | | 0.5% to 0.75%. Even though this is pretty low, it is |
| The latest Consumer Price Index (CPI) number | | | | higher than what most money market accounts are |
| released by the U.S. Department of Labor's Bureau of | | | | currently offering. |
| Labor Statistics states that prices, in all U.S. cities, are | | | | One of the best rates that I have recently seen is |
| up 0.1% in the month of December for the calendar | | | | ING Direct's offering of 2.25% APY for their Orange |
| year of 2002. The Consumer Price Index (CPI) is a | | | | Savings Account. But if these rates are not what you |
| program that produces monthly data on changes in | | | | are looking for, consider investing in the stock |
| the prices paid by urban consumers for a | | | | market. With the latest downturn in the economy, |
| representative basket of goods and services. | | | | shares are pretty cheap and going fast. There are |
| Furthermore, the national unemployment rate | | | | now many online brokerages that allow consumers to |
| continues to remain steady at 6.0% for the month | | | | purchase stocks for a small fee. For instance, |
| of December 2002. Believe it or not, this may not be | | | | Sharebuilder lets consumers invest for as little as $4. |
| as bad as it sounds. | | | | However, please be wary, this investment option is a |
| Economic theory suggests that an increase in the | | | | greater risk so you should consult with a financial |
| inflation rate will lead to a decrease in the national | | | | advisor before taking this step. |
| unemployment rate. But since the unemployment | | | | Whether you choose to put your money in these |
| rate is currently 6.0%, this may also suggest that in | | | | investment opportunities or not, it is up to you. But |
| order for this rate to eventually decrease, we should | | | | just remember that if you don't, you are actually |
| expect more inflation in the future. The recent | | | | losing money because the "purchasing power" of |
| upsurge in oil prices together with precious metals | | | | your dollar is decreasing as the inflation rate is |
| supports this theory and may also be a hint of | | | | increasing. |
| what's to come. | | | | |