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In this YouTube Short I’ll discuss how to profit from inflation. Here are the highlights…
Smart investors can profit in just about any environment, and that includes one where inflation is on the rise. However, it’s been a long time since we had serious inflation concerns here in the U.S., so let’s review what to focus on.
Here is the basic rule of thumb. Focus on assets that bring in more cash, or rise in value as inflation increases. Ok, great idea, right? But what are these assets?
Real estate is a big one, with rents typically rising with inflation. Invest in Real Estate Investment Trusts or REITs that specialize in rental apartment holdings, their profits should go up significantly. What else? How about commodities!
Those are a bit trickier of course because not every investor understands how to trade commodities futures, but there is a lot of profit to be found there during inflation, as commodity prices tend to rise.
Want something a bit less exotic? How about Treasury Inflation Protected Securities, or TIPS. They’re government treasury bonds that feature periodic adjustments for inflation.
If you just prefer stocks, focus on value as opposed to growth stocks. With low P/E ratios and high cash flow, these companies tend to do better than most in this economic environment.
And those are just some ideas how investors can get ahead when inflation is on the rise.
DISCLAIMER
This video was created for informational and educational purposes only, and should not be construed as a source of specific investing, financial, accounting, or legal advice. This video should never be used as the sole source of information, without consulting with a financial or legal professional to determine what may be best for your individual needs. The creator of this video, Elliot J. Gindis, does not make any guarantee or other promise as to any results that may be obtained from using the information in the video. To the maximum extent permitted by law, the creator of this video disclaims any and all liability in the event that any information, commentary, analysis, opinions, advice, and/or recommendations contained in this video prove to be inaccurate, incomplete, or unreliable, or result in any financial or other losses….(read more)
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How To Profit From Inflation #shorts
Inflation has become a growing concern for many individuals and businesses alike. As the global economy recovers from the impacts of the COVID-19 pandemic, inflation rates have been on the rise. While inflation can erode the purchasing power of money, it also presents opportunities for those who are properly positioned to take advantage of it. In this article, we will discuss some strategies that can help you profit from inflation.
1. Invest in real estate: Real estate has long been considered a hedge against inflation. As prices rise, so too does the value of real estate assets. By acquiring properties or investing in real estate investment trusts (REITs), you can not only benefit from capital appreciation but also cash flow from rental income. Additionally, real estate can serve as a tangible asset that retains value even in the face of inflation.
2. Diversify your portfolio: Inflation can impact different sectors of the economy differently. By diversifying your investment portfolio across various sectors such as commodities, stocks, bonds, and cryptocurrencies, you can spread the risk and potentially benefit from sectors that tend to thrive during inflationary periods. This diversification can help safeguard your investments and maximize returns.
3. Invest in inflation-protected securities: Governments issue inflation-protected securities, such as Treasury Inflation-Protected Securities (TIPS), that adjust their value in line with inflation. These bonds provide investors with a guaranteed real rate of return, protecting their purchasing power. By investing in such securities, you can ensure that your investments keep pace with inflation.
4. Consider commodities: Commodities, such as gold, silver, oil, and agricultural products, have historically shown the ability to preserve value and generate returns during inflationary periods. When the value of money declines due to inflation, the value of commodities tends to rise. Investing in commodities can be achieved through direct purchases, commodity-based exchange-traded funds (ETFs), or commodity futures contracts.
5. Start a business: Inflation often leads to higher prices for goods and services. By starting a business or expanding an existing one, you can potentially increase your revenues to keep up with rising prices. Businesses that supply essential goods or provide services that are in high demand during inflationary times can experience increased profitability.
6. Review your debt and interest rates: Inflation erodes the value of debt over time. If you have fixed-rate debt, such as mortgages or loans, the real value of your payments decreases as inflation rises. On the other hand, variable-rate debt can be burdensome during inflationary periods as interest rates tend to increase. It may be beneficial to review your debt structure and consider refinancing or consolidating your debts strategically.
7. Invest in yourself: In times of inflation, acquiring new skills and knowledge can be a valuable investment. By enhancing your skillset, you increase your marketability, making it easier to command higher wages or start a new business venture. Education and personal development can be a robust strategy to protect your purchasing power and increase your earnings potential.
While inflation can be a cause for concern, it can also present lucrative opportunities if you plan ahead and make informed decisions. By diversifying your portfolio, investing in real estate, commodities, or inflation-protected securities, starting a business, reviewing your debt, and investing in yourself, you can position yourself to profit from inflation and protect your wealth in the long run. Remember, seeking professional advice from financial experts is always prudent before making any investment decisions.
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