If anything, government statistics understate the rate of inflation. Most Americans would probably agree that the CPI doesn't reflect the extent to which the cost of living has gone up over the years and their dollars don't buy as much as they once did. And even the official rate of inflation is likely to go higher from here over time. In fact, many widely respected authorities -- from former Fed Chairman Paul Volcker to Berkshire Hathaway ( BRK-A), ( BRK-B)) CEO Warren Buffett -- have warned that the extraordinary monetary actions that are being taken -- and are still likely to be taken -- by the Fed and other central banks around the world raise the risk of higher inflation sooner or later. I wouldn't want my portfolio to be in cash when that day arrives. This commentary is from an investment professional with Clear Harbor Asset Management who is a participant in TheStreet's expert contributor program.