Today, I’ll discuss how to invest your money during inflation, and share my best inflation investment strategies for 2022. Inflation just hit 7.9% and the prices of literally everything across the board just keep rising. In this video we’ll answer questions like what is inflation, how does inflation affect investors, and three specific investments that do well during periods of rising inflation to make you a better investor in 2022.

We’ve all seen the inflation headlines and it’s all around us. Prices of everything from gas to groceries to rent have risen to new levels in 2022. On March 10th, the US Bureau of Labor Statistics reported that inflation is now at a whopping 7.9%, which is the highest inflation has ever been in the us in over 40 years. So, what’s going on here? As an investor, the low two percent inflation economy we got accustomed to in previous years is behind us – at least until the Fed can bring it back down under control – and that’s a big IF. This new environment does affect the type of investments you should be making, as well as how you should be positioning your portfolio in 2022 and beyond.

What exactly is inflation? Inflation is the gradual loss of a currency’s buying value over time. The increase in the average price level of a basket of selected goods and services in an economy over time can be used to calculate a quantitative estimate of the rate at which buying power declines. A rise in the general level of prices, which is frequently stated as a percentage, signifies that a unit of currency now buys less than it did previously. Inflation is distinguished from deflation, which happens when money’s purchasing power rises but prices fall.

What are some of the best inflation investment strategies for 2022? Stocks are said to be the best inflation hedge since the rise in stock values includes the effects of inflation. Because practically all modern countries add to the money supply by injecting bank credit into the financial system, much of the immediate influence on prices occurs in financial assets that are priced in currency, such as stocks.

Should you invest at a period of rising inflation? With growing inflation, stock market investing is more vital than ever. Prices are rising, putting a greater strain on household budgets than they have in the last 40 years, making it more crucial than ever for many investors to keep their long-term savings in the stock market. Investing amid inflation, of course, has the major benefit of preserving the value of your portfolio. The second reason is that you want your savings to continue to increase. It can also lead to diversification, which is always a good idea. Spreading risk over a diverse group of holdings is a tried-and-true strategy of portfolio construction that works for both inflation-fighting and asset-growth strategies.

This video and channel cover the following topics:
• what is inflation?
• how to invest your money during inflation
• best inflation investment strategy for 2022
• best investments to beat inflation and high inflation investing
• investing for beginners and where to invest when inflation is high
• investing to protect against high inflation and hyperinflation

Build My ROI is a channel here to empower you with the mindset and financial skills that you need to build and grow your wealth. My goal is first to share what I’ve learned working professionally in finance as an investor over 15 years, and secondly, break down financial and investing concepts into simple language, while giving it to you straight, without the hype. The content I share here is educational information, and should not be construed as financial advice, so please consult your investment advisor, because everyone’s situation and risk tolerance are unique.

If you enjoyed this video about how to invest your money during inflation, featuring my best inflation investment strategies for 2022, please remember to like, share, subscribe and leave a comment if you have any questions, suggestions, or feedback. We hope to see you here again soon!

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LEARN ABOUT: Investing During Inflation

REVEALED: Best Investment During Inflation

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Investing your money wisely is always important, but it becomes even more crucial during times of inflation. Inflation is defined as a sustained increase in the general level of prices for goods and services in an economy over a period of time. When prices rise, the purchasing power of your money decreases, which can have a significant impact on your savings and investments. However, with careful planning and the right strategies, you can navigate through inflation and make your money work for you.

Here are some of the best inflation investment strategies for 2022:

1. Diversify your portfolio: One of the key principles of investing is diversification. By spreading your investments across different asset classes, such as stocks, bonds, real estate, and commodities, you can reduce the risk of your portfolio suffering during inflationary periods. Diversification allows you to take advantage of the growth potential of different sectors while mitigating the downside risks.

2. Invest in real assets: During inflation, the value of tangible assets tends to rise. Consider investing in real estate or commodities like gold, silver, or oil. Real estate can provide steady income through rental properties and can also appreciate in value over time. Commodities, on the other hand, can act as a hedge against inflation as their prices tend to rise when inflationary pressures build up.

3. Focus on dividend-paying stocks: Dividend stocks can be a great way to generate income during inflationary periods. Look for companies with a history of consistent dividend payments and a strong balance sheet. These companies are often well-positioned to weather inflationary pressures and can provide a reliable stream of income.

4. Consider Treasury Inflation-Protected Securities (TIPS): TIPS are government bonds specifically designed to protect against inflation. The principal value of these bonds increases with inflation, which means that the interest payments also increase. While TIPS may have lower yields compared to regular bonds, they offer the benefit of preserving the purchasing power of your investment.

5. Explore international investments: Inflation can vary across countries, and investing in international markets can provide diversification and potentially higher returns. Look for countries with stable economies and low inflation rates. Consider investing in international stocks or mutual funds that have exposure to these markets.

6. Maintain a balanced and flexible approach: Inflation can be unpredictable, and its impacts can vary over time. It is important to regularly review and rebalance your portfolio to ensure that it aligns with your goals and risk tolerance. Moreover, stay updated on economic indicators and adjust your investments accordingly.

While these strategies can help you navigate inflation, it is essential to consult with a financial advisor to tailor your investments to your specific circumstances and goals. They can provide personalized advice based on your risk tolerance, time horizon, and financial situation.

In conclusion, investing during inflation requires a proactive and informed approach. Diversify your portfolio, invest in real assets, consider dividend stocks and TIPS, explore international investments, and maintain a balanced and flexible approach. By implementing these strategies, you can navigate the challenges of inflation and position your investments for long-term growth and stability.