Inevitable inflation? What do we do?

[Matt Higgins]

The 10 year yield is up to 1.28 from a low of .52 in august.  The 30 year bond has a 2 in front of it for the first time in awhile.  Combined with lumber, food, housing, gas, it’s obvious that inflation is beginning to ramp up.  We have an administration that is increasing the money supply by putting it directly into the bank accounts of US citizens.  They have little interest or ability to actually raise taxes and add stress to the economy.  I believe inflation is happening, and this time for real!  This increase in money supply is creating asset bubbles all over the economy, and the end result will be inflation.  How much I don’t know. 

My action would be to lock in long-term rates on multi-family projects and try to push maturity out a fresh 10 years.  If you actively manage your retirement portfolio sell bonds to buy stock.  Lock in 30 year money on any single family homes that you can.  Refinance your single family home if you haven’t.  Personally I would wait on acquisitions until the eviction moratorium ends to see how things shake out.   If you can borrow long term at 4% you will probably do great, but a rise in rates and an increase in distressed properties could definitely have a negative impact on home prices. 

Am I overreacting or wrong on my prediction?  Anything wrong with my action plan?  Any other ideas on what to do to battle inflation?