In this video, we are going to learn how to protect against inflation in 2022!
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*DISCLAIMER: Everything in this video is for educational and entertainment purposes, not investing advice.

WHAT IS INFLATION?
Inflation means, that your currency is losing its purchasing power. In short: You can’t buy nice things as cheaply as before.

HOW TO PROTECT AGAINST INFLATION?

1. GOLD
One of the most used hedges against inflation has always been gold. However, according to CNBC, it might not be that great hedge. Especially in a short term, it’s more gambling, but so far it has been a great hedge against inflation long-term.

2. COMMODITIES
According to Vanguard’s Research, commodities are the most powerful way to hedge against unexpected inflation. Over the last decade, the commodities increased between 7 to 9% for every 1% of unexpected inflation.
Commodities are basically all kinds of materials and products that are traded, meaning things like oil, natural gas, silver, and even that coffee you drank this morning. You can invest in them easily by investing in commodity ETFs.

3. REAL ESTATE
Real estate is a great way to hedge against inflation because home prices also go up. If you are renting your real estate, you can also increase the rent every year. So, in short: You are getting a discount for your mortgage, because the mortgage payments stay the same, while your house is going up in price, and you are making more money from rent each year, while the mortgage payments stay the same.

4. BONDS
Bonds might sound terrible way to hedge against inflation, but have you heard of TIPS? Treasury inflation-protected securities. These are tied to the inflation rate, so when the CPI, consumer price index, which is the measurement for inflation, rises, so does the base value of TIPS.

5. STOCKS
Stocks have also always been one of the best ways to protect against inflation. While some of the stocks aren’t as great as others, you can’t go wrong with the S&P 500 Index Fund. All-time returns for S&P 500 Index are over 7%, even when adjusted to inflation. From 1980 to 2022 the returns are 8.67% when adjusted for inflation. And from 2000 to 2022 the returns are 4.93% when adjusted for inflation. So not only does it hedge inflation, but it is also actually making you more money!

6. ANYTHING! JUST DON’T KEEP EXCESS CASH.
100% sure way to lose your money is keeping excess cash. So try to avoid that, and invest in anything you want – the best investment might be in yourself!

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The potency of commodities as an inflation hedge

Gold as an inflation hedge? History suggests otherwise
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HOW TO: Hedge Against Inflation

REVEALED: Best Investment During Inflation

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