The Best Way To Invest During High Inflation

Want to know what to invest in during high inflation? How should you invest during inflation in general? We’re going to walk you through the basics of inflation and then a great way to deal with this.

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00:00 — Intro
00:29 — Inflation explained
01:45 — Best way to invest
02:45 — Worst way to invest

The information contained in this communication is provided for general informational purposes only, and should not be construed as investment or tax advice. All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Wealthfront Advisers and its affiliates do not provide tax advice and investors are encouraged to consult with their personal tax advisors to discuss tax-related matters specific to their situation. Investment advisory services are provided by Wealthfront Advisers LLC, an SEC-registered investment adviser, and brokerage products and services are provided by Wealthfront Brokerage LLC, Member FINRA/SIPC….(read more)

HOW TO: Hedge Against Inflation

REVEALED: Best Investment During Inflation

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High inflation can be a challenging time for investors. Inflation reduces the purchasing power of your money, making it more difficult to maintain your standard of living. As such, it is crucial to adopt investment strategies that can help protect your money from the ravages of inflation. Here are some of the best ways to invest during high inflation.

Invest in Inflation-Protected Securities

Inflation-protected securities are investments that have their returns adjusted for inflation. These securities include Treasury Inflation-Protected Securities (TIPS), which are issued by the US government. These securities are backed by the US Treasury and offer a guaranteed real return.

Invest in Equities

Stocks tend to perform better during periods of high inflation. Companies that have pricing power can increase their prices to match the rise in inflation, which can lead to higher profits. Additionally, equities can offer protection from currency depreciation caused by inflation. However, investors should be careful to invest in high-quality companies with sound fundamentals, as high inflation can also lead to bankruptcies of companies that are not well-managed.

Invest in Real Estate

Real estate is another investment that can provide protection from inflation. During times of high inflation, real estate prices tend to rise, especially for properties in desirable locations. Additionally, rental income can increase with inflation, providing a steady income stream that can keep up with the rising cost of living.

Invest in Commodities

Commodities such as gold, silver, oil, and basic foodstuffs can provide a hedge against inflation. When prices for these commodities rise, they can help maintain the purchasing power of your money. However, investors should be careful when investing in commodities as their prices can be volatile.

Diversify Your Portfolio

Diversification is key to protecting your investments during times of high inflation. By investing in a variety of asset classes, you can spread your risk and reduce the impact of inflation on your portfolio.

In conclusion, investing during high inflation requires a thoughtful approach that takes into account the unique challenges of this economic environment. By investing in inflation-protected securities, equities, real estate, commodities, and diversifying your portfolio, you can help protect your wealth and maintain your purchasing power during times of high inflation.