{"id":716,"date":"2021-04-10T11:35:05","date_gmt":"2021-04-10T11:35:05","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=716"},"modified":"2021-04-13T11:04:13","modified_gmt":"2021-04-13T11:04:13","slug":"what-investments-do-well-in-inflation","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/what-investments-do-well-in-inflation\/","title":{"rendered":"What Investments do well in Inflation?"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>Investors who invest money in\nstocks, bonds, and other money-market instruments show concerns about\ninflation. It is often seen that many retail investors looking out the ways to\nprotect themselves against inflation or to hedge against inflation. Inflation\nsignificantly lowers the value of fixed-income investments and cash savings.\nBut, is it possible to make investments that perform well in the inflation\nperiod? \u2013 Yes! <\/p>\n\n\n\n<p>Certain investments perform well\nin inflation. Selecting among these assets should be based on your own\nfinancial goals and how severe the inflationary environment is.<\/p>\n\n\n\n<p>The solution is to pick the\nassets that provide variable interests and appreciate over time. Also, it is\nimportant to choose investment options that will provide you with a return\ngreater than the rate of inflation \u2013 or at least, that keeps up with it. <\/p>\n\n\n\n<p>Below we\u2019ve shared some of the investment choices to hedge against inflation:<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list\"><li><a href=\"#Stocks\" title=\"Stocks\">Stocks<\/a><\/li><li><a href=\"#Commodities_Gold\" title=\"Commodities (Gold)\">Commodities (Gold)<\/a><\/li><li><a href=\"#Inflation-indexed_Bonds\" title=\"Inflation-indexed Bonds\">Inflation-indexed Bonds<\/a><\/li><li><a href=\"#Final_thoughts\" title=\"Final thoughts\">Final thoughts<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Stocks<\/strong><\/h2>\n\n\n\n<p>When inflation is on the rise,\nthe businesses can extract more from the consumers and as a result, receive\ngood cashflows and hence the stock price should likewise increase. There is no\nguarantee but historically, the stock market has provided returns that beat\ninflation. Investing in growth stocks can help investors getting inflation-adjusted\nreturns in the long term. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Commodities (Gold)<\/strong><\/h2>\n\n\n\n<p>Gold is another popular inflation\nhedging strategy because of its direction about rising inflation. Generally,\nwhen inflation arrives the price of gold also increases. It is not just gold\nbut other commodities such as silver and copper which rise in value when there\nis inflation in the stock market. By keeping commodities in an investment\nportfolio one can take advantage of the inflation period and see rising in value.\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Inflation-indexed Bonds<\/strong><\/h2>\n\n\n\n<p>Generally, bonds are not good\nchoices to hedge against inflation. It is because of the fixed interest rates\nthroughout the years that make vulnerable to the changing inflation rates.\nHowever, some inflation-indexed bonds have interest rates indexed to inflation.\nIt means, the investment returns go up with the inflation rate \u2013 and go down\nwith the deflation. Since these bonds are backed by the government, make them\nthe ideal choice for conservative investors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Final thoughts<\/strong><\/h2>\n\n\n\n<p>Investing for inflation is an essential step to protect your wealth from eroding in value. Though inflation erodes your savings, it is important to keep some cash for financial security. Try not to keep too much. Plan your investments for inflation, and select an investment strategy that works in your favor. Choose the assets that provide growth and appreciation. Look out for assets that offer variable interest rates. <\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 3,927<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"716\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">5    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Investors who invest money in stocks, bonds, and other money-market instruments show concerns about inflation. It is often seen that many retail investors looking out [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/what-investments-do-well-in-inflation\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":717,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,10],"tags":[174,173],"class_list":["post-716","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment","category-featured","tag-investment-assets","tag-inflation"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=716"}],"version-history":[{"count":2,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/716\/revisions"}],"predecessor-version":[{"id":719,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/716\/revisions\/719"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/717"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}