Inflation has absolutely skyrocketed.
The inflation rate – represented by the consumer price index (CPI) – rose roughly 7.5% in 2021.
That’s a 39-year high.
While the Fed tried to tell us that this inflation was “transitory”… we now know what a false story that was.
The supply chain problems and the shortages that we’ve been experiencing are certainly part of the picture, of course.
For instance, the cost of new vehicles went up 11% year-over-year. That is being driven by the chip shortage.
Over time, as that supply crunch resolves, though, these prices will stabilize.
But the heavy money printing we’ve seen over the past two years will result in permanently higher prices for many of the goods we depend on every day.
All the government “stimulus” – the $5 trillion+ – is already having an impact on normal people.
This is obviously deeply concerning.
If we are just keeping our money in a traditional savings account, we are losing value in real terms every year due to inflation.
And with the recent volatility hitting the markets, many investors are wondering how to protect their money…
So in today’s essay, I’ll share some suggestions for guarding against inflation… and another opportunity to profit big over the coming year.
Dealing With Inflation
So what can we do in an inflationary environment like now?
There are a few steps we can take depending on our circumstances…
We can finance or refinance our home with a fixed 30-year loan at the lowest possible rate. We’ll pay back the loan over time with inflated dollars (devalued dollars).
And we can invest the money that we didn’t put into the house to make higher returns. Real assets, like property, are always a good store of value in inflationary times.
We can finance income-producing properties using fixed interest rate loans. These could be rental properties or timberland. It’s the same reason as above, and the benefit is that land is a real asset.
We could invest in digital assets like cryptocurrencies, digital tokens, and digital securities. However, this asset class has higher risk. So this kind of investment would require more diligence from investors.
There will also be digital assets backed by real assets, cash flows, dividends, or equity that could be smart places to allocate capital.
Precious metals like gold and silver might be interesting, but I’m not convinced. More than $10 trillion was printed during 2008–2016, but gold just didn’t rise that much. And now, even with trillions of dollars of new stimulus spending, gold is still only around $1,800 an ounce.
Collectibles present another interesting asset class. Artwork, rare wine, vintage automobiles, rare watches, numismatics, and other collectibles have historically been excellent stores of value.
And the collectibles market is now racing into the digital age with non-fungible tokens (NFTs), which are swiftly becoming a mature market and an asset class all their own.
These are just a few options for readers to consider.
And the very best way to stay ahead of inflation? Investing in the areas of the market that are growing at a faster pace than the rate of inflation.
If we maintain large exposure to the highest-growth segments of the economy, it ensures that our wealth will grow faster than the devaluation of our currency.
And right now, I’m seeing an opportunity that is unlike anything else in the market.
A “Hidden” Opportunity
I know people are struggling with the increases in the cost of just about anything that we purchase. This is especially painful given the current market volatility and pullback.
Having the markets and the value of our savings and our stock portfolio decline at the same time is just untenable.
That’s why, on February 16, at 8 p.m. ET, I’m arranging an exclusive private briefing for anyone concerned about their portfolio.
There, I’ll reveal exactly how we should tackle our investments in this environment… Should we buy? Sell? Hold?
And I’ll also explain how to take advantage of a “hidden” investment opportunity in the technology sector… one that could enable investors to profit big from a trend that’s about to take off over the coming year…
At this briefing, I’ll also share what I’m doing with my own personal money… and reveal one of my favorite stocks for 2022 that could be an easy double.
So please, join me on February 16. I promise it will be worth your time.
And if you haven’t already, please go right here to reserve your spot for this exclusive briefing.
I’ll look forward to seeing you there!
Editor, The Bleeding Edge
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