What's your strategy for high inflation? πŸ€‘

As you may know there are rumors on having high inflation towards the end of the year or next year.

Here are some of the commonly accepted strategies to emerge stronger from an inflationary environment:

  1. Buy Gold
    Gold is known to be the OG inflation hedge owing to its scarcity and historical appreciation in tandem with Money Supply.

  2. Buy Consumer Defensive Stocks
    Utilities, Energy, and essential services fare well during an inflationary environment, as the consumer cuts back on luxury expenses but the bare basics retain their share of the spend.
    Think stocks like Procter & Gamble $PG, Coca Cola $KO and Phillip Morris $PM

  3. Counter-intuitive: Buy more tech!
    Higher inflation is essentially a high dollar value for a basket of goods and services. When prices rise, the share of marketing spend per product also rises, benefiting ad-monopolies like Google and Facebook.

What’s your strategy in case of high inflation? What kind of investment decisions are you going to make?

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Great advice Ayush. I would add investing in Real estate investment trusts (REITs) as well. REITS are companies that own and operate income-producing real estate so that you do not have to own a property yourself; thereby avoiding the high barrier to entry into the real estate sector. Property prices and rental income tend to rise when inflation rises. A REIT consists of a pool of real estate that pays out dividends to its investors. A good example would be the Vanguard Real Estate ETF.

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