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So the short-term outlook is not promising. But what about long-term protection against inflation? Money manager Rob Arnott, chairman of Research Affiliates, whose strategies are used to manage $43 billion in assets, believes the inflation rate could climb above 5% in two to three years and that investors should dedicate a quarter to a third of a portfolio to inflation protection. But he's not a fan of gold, which, he says, basically tracks inflation over the long term, leaving you a loser after taxes. "Gold is not a sensible core holding," he says. valetine's Day gifts
Like Rogers, Arnott thinks common commodities are a smarter choice. He suggests iShares GSCI (GSG, $30), an ETF that tracks the broad S&P commodities index. Arnott also likes using Treasury Inflation-Protected Securities, real estate investment trusts (REITs), and emerging-market bonds, which you can buy through the PowerShares Emerging Market Sovereign Debt ETF (PCY, $26). Many developing countries are commodities producers, so if U.S. inflation kicks in, their currencies will gain strength and their debt will rise in value. Links of London Bangle
After a 2006 tornado ravaged her tiny Arkansas town, Marmaduke Elementary School librarian Lena Hood felt sick as she surveyed the debris-covered stacks. "It was so sad," says Lena, 63. Yet the damage to the rural school--where half the students are poor--made one thing clear: The school's library was a relic, with tattered, outdated books, including a 1957 tome on the Soviet Union. Links of London Earrings
Enter Team Target. For three weeks crews working with the Target Volunteers School Library Makeover campaign painted the walls, brought in furniture, laid carpeting and installed four desktop computers. On Sept. 29 some 30 volunteers from Target--which, with the Heart of America Foundation, a nonprofit literacy group, has renovated 17 other school libraries this year--replaced old books with 2,000 new volumes and gave each of the school's 394 students five books to take home. "They had books from when I went to school," says Target volunteer Tommy Hendrix, 24, a Marmaduke alum. "This was needed." Links of London Charms
No one could agree more than Emma Morton, 11, a sixth grader eager to jump into the Harry Potter series. "The library was running out of things for me to read," she says, "so this is really neat." Agrees Lena Hood: "Now there's such pride."