Investment Strategies for Inflation in 2021 and Beyond

by | May 11, 2023 | Invest During Inflation | 36 comments




Investing for 2021 & beyond must consider inflation because given the staggering amount of money printing, we are already witnessing it all with asset price inflation, and we have to invest in a way so that if inflation happens, we are ok but also so that if it doesn’t happen, we are ok. I call them no risk inflation investing strategies.

0:00 Investing and Inflation
0:54 Real Investing
2:45 What to Look for
4:35 RE
5:04 Stocks
6:27 Gold
8:23 Take Debt
9:27 ADM is a Good Stock

If there is inflation in the future, we have to start thinking about real assets. Real assets are assets that provide real value. Think of it like you have to eat, you have to have electricity etc. All things that are relatively fixed in supply and have pricing power. That makes you sleep well no matter what.
The stock discussed is Archer Daniels Midland (NYSE: ADM) where if you ate something today, it most likely had to do something with them.
Other ideas are cheap value debt, real estate and anything else that will do good no matter what.
The inflation video:
ADM stock analysis:
RE video:

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LEARN ABOUT: Investing During Inflation

REVEALED: Best Investment During Inflation

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As we head into the year 2021, investors are increasingly looking for ways to protect their wealth from inflation. With central banks around the world printing money at unprecedented rates and governments running massive deficits to combat the economic fallout from the COVID-19 pandemic, investors are rightly concerned about the potential for inflation to erode the value of their savings.

Fortunately, there are a number of inflation investing strategies that can help investors protect their wealth in the years ahead. Here are some of the most effective options.

Invest in Gold

One of the most time-tested inflation investing strategies is to buy gold. Gold is a globally recognized store of value that has been used as a currency for centuries. When paper currencies lose value due to inflation, gold tends to hold its value, and often even rises in price.

There are a number of ways to invest in gold. One option is to buy physical gold bullion, such as gold coins or bars. Another option is to buy exchange-traded funds (ETFs) that hold physical gold. There are also mining stocks and mutual funds that invest in gold-related companies.

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Invest in Real Estate

Another way to protect yourself from inflation is to invest in real estate. Real estate has historically been a good hedge against inflation, as property values tend to rise over time. Additionally, real estate can produce income through rent, which can also help to protect against inflation.

To invest in real estate, investors can buy rental properties, invest in real estate investment trusts (REITs), or buy shares of mutual funds or exchange-traded funds that invest in real estate.

Invest in Commodities

Investing in commodities is another way to protect against inflation. Commodities, such as oil, gas, and agricultural products, tend to rise in price during inflationary periods due to increased demand.

Investors can invest in commodities through ETFs or mutual funds that track commodity indexes. For those who want to take a more hands-on approach, it is also possible to invest in commodity futures.

Invest in TIPS

Finally, investors can protect themselves from inflation by investing in Treasury Inflation-Protected Securities (TIPS). TIPS are bonds issued by the U.S. government that are indexed to inflation. This means that when inflation rises, the value of TIPS increases as well.

TIPS are a low-risk way to protect against inflation, as they are backed by the full faith and credit of the U.S. government. They can be purchased directly from the U.S. Treasury or through a broker.

Conclusion

Investing in 2021 and beyond will require careful consideration of the potential impact of inflation on your portfolio. By using inflation investing strategies such as buying gold, investing in real estate, buying commodities, or investing in TIPS, investors can protect their wealth and potentially even profit from inflationary periods. As always, it is important to work with a financial advisor to design a portfolio that meets your specific goals and risk tolerance.

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36 Comments

  1. Value Investing with Sven Carlin, Ph.D.

    I apologize! There is a relentless spam bot impersonating me in the comments! I hope YouTube solves the issue soon. Each day they make many accounts with my name and pic and spam all the comments. Don't take the bite!!!!!

  2. pongop

    I just watched this video a couple hours ago. You shared a quote from Common Stocks and Uncommon Profits: "In this market there are many who know the price of everything but the value of nothing". That stood out to me. Right now, I just started watching a TED-Ed video called, "The Philosophy of Cynicism." The very first thing in the video is a quote: "'Nowadays people know the price of everything and the value of nothing.' from Lord Henry, in The Picture of Dorian Gray by Oscar Wilde." This video was already in my watch list, and for some reason I decided to watch it right now. It is obviously a very impactful quote!

  3. Dan

    This aged so well like a fine wine … 2020 q4 most were in growth/tech and transitory inflation … got burned by now … while Value came back like crazy 🙂 … bravo Sven, you and your mindset and framework rock !

  4. Sigurður Ágústsson

    The voice of reason again. A portfolio is build over 10s of years, not 3 months.

  5. J L

    30% cash flowing rental properties
    15% commodities
    5% precious metals
    5% crypto
    45% stocks

  6. Finder99

    Keep up the good work!

  7. eralec

    What about Unilever right now? Has pulled back quite a bit and to me at least the stock is sensible as an inflation hedge – it is active in EM, food is always required :), strong brands, etc. p.s. thank you as always

  8. Peter Xian

    one future is certain, time moves forward and we all get older and hopefully wiser with your videos =D

  9. Luca

    Grazie per i contenuti Sven! Posso chiederti se valido investire nel mercato Thailandese?

  10. Monton

    Great!

  11. Roly The Holy Paladin

    Great video and thanks for the stock pick, definitely like the look of it and logical it would be a sound investment for a long term position. Massively informative!

  12. Roly The Holy Paladin

    So yeah, I'm from 2030. I can safely say it's green energy, EV card and robots – Nah just kidding, I am just presuming

  13. Vlad i Mir

    Why should I invest in ADM with 59% in 5 years? SPY gave 97%. Where is the reason?

  14. Luis E E S

    Sven, Thanks Again for your videos, great knowledge and great advices.

  15. Berzerk

    Hi Sven – I'm really enjoying your channel and appreciate your succinctness.
    I'd like to know your opinion on selling cash-secured puts as a value investor? I suspect this to be a better way of entering positions in a laddered way than outright buying and accepting full risk. If you've already answered this elsewhere, I apologize – I'll keep watching and learning from your videos.

  16. E Huang

    Great stuff. I’m in my late 40s, seen a few overvalued markets. Enjoy everything you say about cash/trash, need real assets, stress free if crash due to purchase of (reasonably predicted) of future cash flows, value investing, real estate.

    I will look myself, but can you direct me to your video with your thoughts on commodities? You mention they are low priced, I’m interested because they already copper, oil has already gone up a bit….

    Once again, great stuff

  17. Jean-Francois Lechasseur

    Hi Sven, I was also thinking of commodities. Started to look for ETFs. I do not know where to start. Any recommendations? Thanks for all your good work!

  18. Nauman Hashmi

    Sir Sven your Channel is also under valued 🙂

  19. Nicholas Kudlapur

    Sven mentioned commodities at the end being cheap. Has he made a video talking just about commodities?

  20. Zack Snyder

    Hey Sven, I'm currently buying General Electric, Energy Transfer, and Altria. I think they are all good value stocks. I was looking at Archer Daniels Midland too. I like your channel and your picks

  21. Miska Simola

    Hello Sven.
    I have a clever question for you.
    How much you´re gonna get?
    When do you get it?
    And how sure are you?

    How sure are you that there are two in the bush and how long you have to wait to get them out? How many birds are in the bush, When are you gonna get them out and how sure are you?

  22. Vincent Teo

    @Sven – Great analysis and coverage, brilliant!

    May I know how do you get investment exposure to airports?

  23. Marcos Moraes

    Caro Sven Carlin, como ja registrei anteriormente acompanho seus videos. Obrigado pela boa pronuncia e excelentes analises. Quero agradecer pelo seu canal e seu trabalho. Desejo um feliz ano 2021.

  24. Alberto Sayavera

    Thanks for your videos Sven!
    Will you do a video about those cheap commodities?

  25. Brendan Mael

    Thank you Sven for your videos. I have been following you for more than 1 year already. Your channel is extremely valuable for me.

  26. dreadful

    For those of you whom are really listening , this video is basically giving you a template on how to ride the next 10 crazy years.

  27. Martin Alley

    I'd be interested in a video on Meyer Burger AG. They own 18.8% of Oxford PV which has just announced solar efficiency of 29%, where normal efficiency is 15-20%

  28. karan devgun

    please share your portfolio. Don't want to know the dollar amount but the stocks that you own

  29. Dimitar Slavov

    Hi Sven.
    ADM is a great pick definetily considering commodity prices are relatively low now and a lot of people do not believe prices to stay such low in next years.
    I'd be interest if you have an opinon on what range in percentage of a relatively balanced stock portfolio shoud be put in commoditiy stocks, basic materials stocks, utilities stocks or similar in normal times and times when we expect commodity prices to rise?
    Thanks 🙂

  30. Yoann

    Thanks Sven your videos are definitely the best!!!! ❤ One question though, which camera / webcam do you use please?

  31. Stelyan Ivanov

    Great video Sven! Don't pay attention to the haters or bots.

  32. Emil Pitschujew

    Thanks for your honest words Sven!

  33. TheAllfreed

    thanks for your old adm video.. bought around 30-35 during march, april 🙂

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