Inflation is surging at levels not seen in 30 years. The consumer price index (CPI) surged 6.2% from a year ago in October even though the Fed has repeatedly said that inflation is transitory.
Core inflation, stripping out food and energy, increased 4.6%, the fastest gain since August 1991.Energy, shelter and vehicle costs led the gains, which more than wiped out the wage increases that workers received for the month.
Are we heading to much higher inflation from all the money printing or can we even see hyperinflation? What can you do to protect your assets during inflationary periods? What are the best investments during inflation? Should you buy more real estate, gold and silver, energy stocks and dividend stocks?
Be @financially aware of the financials of any stock or any other investment before you consider investing in it.
Disclaimer: I am not a financial advisor, and nothing on this channel is meant to be financial advice. The ideas expressed on this channel are purely opinions and should not be regarded as objective information. Nothing on this channel is a recommendation to buy or sell securities. Do not assume that facts and numbers in any video are accurate. Always do your own due diligence….(read more)
LEARN ABOUT: Investing During Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
Inflation Rate Surges To 30 Year High: How To Invest Right Now
The global economy is currently experiencing one of the highest inflation rates seen in the past 30 years. This surge is causing investors and individuals to take a closer look at their financial strategies and assess how to navigate these uncertain times. In this article, we will discuss some essential tips to help you invest wisely in the face of skyrocketing inflation rates.
1. Diversify Your Portfolio: With inflation soaring, it’s crucial to diversify your investment holdings. By spreading your investments across various asset classes such as stocks, bonds, real estate, and commodities, you can protect yourself from inflation’s negative impact on a single sector.
2. Consider Inflation-Protected Securities: Inflation-protected securities, such as Treasury Inflation-Protected Securities (TIPS), are designed to provide returns that outpace inflation. These fixed-income investments adjust their principal value based on changes in the Consumer Price Index (CPI). Allocating a portion of your portfolio to these securities can help safeguard against inflation’s erosive effects.
3. Invest in Real Assets: Inflation often drives up the prices of real assets such as real estate, gold, and commodities. Consider investing in these assets to protect your wealth from inflationary pressures. Real estate, in particular, can be a valuable hedge against inflation, as rental income tends to increase with rising prices.
4. Research High-Yield Stocks: While inflation can be detrimental to certain industries and companies, others thrive in such an environment. Look for companies with pricing power, robust cash flow, and a history of consistently increasing dividends. Investing in high-yield stocks can provide a steady stream of income that keeps up with or exceeds inflation.
5. Review and Rebalance Your Portfolio Regularly: Inflation can disrupt the balance of your investment portfolio. Regularly review your holdings and adjust your investments accordingly to ensure your portfolio remains resilient to inflationary pressures. Set a schedule to revisit your portfolio every few months or seek professional advice to ensure you’re on the right track.
6. Invest in Emerging Markets: Inflation often hits developing economies harder than established ones. However, emerging markets can offer higher growth potential and investment opportunities. Consider allocating a portion of your portfolio to emerging market stocks or mutual funds to diversify your holdings.
7. Focus on Quality Bonds: Rising inflation can erode the purchasing power of fixed-income investments, such as bonds. However, high-quality bonds, especially those with shorter durations, tend to be less affected by inflation than lower-quality or long-term bonds. Consider adding higher-rated corporate bonds or short-term government bonds to your portfolio to mitigate the impact of inflation.
8. Stay Informed and Seek Professional Guidance: Inflation can be a complex economic phenomenon with far-reaching implications. Stay up-to-date with the latest economic news, inflation rates, and market trends. Consider consulting with a financial advisor or investment professional who can offer personalized guidance tailored to your unique financial situation.
In conclusion, navigating the current surge in the inflation rate requires careful planning and strategic investing. Diversify your portfolio, consider inflation-protected securities and real assets, research high-yield stocks, regularly review and rebalance your portfolio, explore opportunities in emerging markets, focus on quality bonds, and stay informed. By implementing these strategies, you can better protect your investments and make informed decisions during these uncertain economic times.
I think this inflation is the first subject I've ever seen the media downplay, it's usually the opposite, exaggeration and hype. Maybe they're in denial because the thought of savings/equity getting decimated is too painful for them to think about. How long did the inflation problem of the 1970's take to clear up? Until a gent named Volker, with nuts the size of canonballs, flipped the bird to everybody and cranked up those interest rates to the moon.
Are bank stocks good during inflation ?
I stopped believing government data last year.
Obamanomics 2.0
Thank you for your review. My understanding is that by end of 2022 the inflation will be around 2.8 percent. Not so bad. High until then.
Energy is difficult to invest in in these days. The large oil companies have a lot of debt and investments in non profitable shale oil fields. It's not like they are sitting on a huge amount of conventional oil reserves that they can tap into once the price goes up. On the contrary, because of ESG they barely invested in exploration. Here in Australia the energy companies had very poor performance mainly because of government regulation. So even if you got the macro completely right most likely you didn't make much money investing in it. I think in many Western countries it's a similar situation. In the UK many utilities went bankrupt recently because the government capped how much they could charge for gas and it's difficult to make money when what you buy goes up 200% and you need to sell it at a previously fixed price.
Donald Trump fake news is real or true, the real question is are we just dumb or are we just dumber
Own yellow rocks
Powell is a crook
It amazes me when I ask different people about how they think the economy is doing they say great, price increases means are economy is growing they tell me to look around people are happy buying new homes and cars, I try to explain that the economic financial growth is not organic we have had inorganic and externally influenced economic and financial growth through excessive money printing, their reply it worked everyone is winning, they then accuse me of being a downer and doomer, scares me how many people have been sucked into this nightmare, looks like I will be buying their stuff for pennies on the dollar sometime soon when reality hits
Thank you for sharing your research with us.