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What to Invest in During Inflation

2022-10-24

Investing strategy for inflation 

The dreaded word. 9 letters long and capable of making us shiver at the thought of it.
Inflation!
The concept of rising prices and diminished purchasing power is a tale as old as time.
Unfortunately for us, we never really get used to its impact. Knowledgeable economists can forecast inflation according to certain criteria, but even so, not much can be done to prevent it. However, does that mean that there isn’t money to be made during a period of inflation? We think otherwise. With the right insight, there are some inflation investments that can provide you with pretty generous earnings. The question remains: What are those investments? Let’s find out. 

Best investments for inflation 2022 

Commodities
Commodities have long been known as one of the most reliable hedges against inflation . Why is that exactly? Firstly, the idea of owning a tangible asset offers peace of mind during tumultuous times of economic uncertainty. When talking about commodities, the mind immediately gravitates towards gold, the most popular, and some might argue the most valuable, as a safe bet. That’s because gold tends to maintain its stability in the long run. In fact, you can also invest in funds that own gold if you’d rather not buy it yourself. There are other commodities besides gold that provide financial relief, such as oil and copper. Both are seen as solid safe examples.
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Real Estate 

Real estate is not so straightforward of a solution, as it involves many different factors. Traditionally, the price of real estate does increase during a period of inflation. Homes become more valuable and therefore more expensive, and rent prices shoot up as well. Now, this doesn’t mean that you have to go out and buy a house, we understand that it’s not feasible for everyone. The solution comes in the shape of Real Estate Investment Funds, or REITs. These are funds that own different types of real estate, and by investing in them, their wins are your wins. 

Stocks 

It’s time to hit Wall Street! The stock market does tend to be viewed almost “negatively” during inflation, as people don’t want to risk investing during a period of potential market volatility. However, there’s a fairly simple solution, portfolio diversification. Putting your fiscal eggs in one basket is a one-way ticket to disaster. During a period of inflation, you need to hedge your bets on multiple different stocks. Diversifying your portfolio greatly improves your chance of making money while riding the wave of increasing prices. 

Cryptocurrency 

And now, for something much less traditional. The emergence of cryptocurrency as a viable financial decision in the past few years has paved the way for investors to flock and strike while the iron is hot. Cryptocurrency has a reputation for its volatility, and might scare off potential investors, especially during a period of inflation where everything is up in the air. However, one aspect of crypto gives it legitimacy in troubling times, its supply.
Crypto, much like many resources in this world, has a finite supply. With every passing year, the supply diminishes as demand grows almost exponentially. Choosing the right cryptocurrency might seem like a challenging task, but it really depends on your investing strategy . As always, we’re well aware of the dangers of volatility in the crypto market, so we do recommend you stick to the (relatively) safest coins such as Bitcoin, Ethereum, and USDT.

Inflation is an unwanted economic consequence, yet it is unavoidable. However, it shouldn’t be all doom and gloom. People looking for a way to combat inflation have viable solutions for investing their money. With the best investments during inflation that we’ve provided, you can rest assured that there are ways to fight the rise of living costs.

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