How to protect your money during inflation
Change in lifestyle
A standard, foundational approach is to maintain a flexible budget, which means you’re able to temporarily decrease your everyday living expenses during challenging times.
A standard, foundational approach is to maintain a flexible budget, which means you’re able to temporarily decrease your everyday living expenses during challenging times.
High-yield, Floating-rate Bank Loans
High-yield bank loans (HYBLs), which are often referred to as leveraged loans, are another effective way to protect your finances from inflation. The protective nature of these loans stems from the fact that their interest rates periodically reset to keep pace with the prevailing market rates, which are strongly correlated with inflation.
High-yield bank loans (HYBLs), which are often referred to as leveraged loans, are another effective way to protect your finances from inflation. The protective nature of these loans stems from the fact that their interest rates periodically reset to keep pace with the prevailing market rates, which are strongly correlated with inflation.
Precious Metals
Another time-tested method of protecting against economic downturn is to invest in precious metals such as gold, silver and platinum. Historically, these assets have shown a high degree of resiliency during prolonged periods of inflation. Investing in precious metals can also help diversify your portfolio if it’s comprised mostly of stocks and bonds
Another time-tested method of protecting against economic downturn is to invest in precious metals such as gold, silver and platinum. Historically, these assets have shown a high degree of resiliency during prolonged periods of inflation. Investing in precious metals can also help diversify your portfolio if it’s comprised mostly of stocks and bonds
Real Estate
Historically, commercial real estate (CRE) has been another effective hedge against inflation. CRE includes any property that is owned and operated for the purpose of generating economic value. This differs from residential real estate, which is used primarily for living space.
Historically, commercial real estate (CRE) has been another effective hedge against inflation. CRE includes any property that is owned and operated for the purpose of generating economic value. This differs from residential real estate, which is used primarily for living space.
Equities
The relatively high return potential and pricing power of these types of companies can easily reinforce the real, long-term value of your financial portfolio. However, you must be prepared to withstand the short-term volatility that equities tend to exhibit.
The relatively high return potential and pricing power of these types of companies can easily reinforce the real, long-term value of your financial portfolio. However, you must be prepared to withstand the short-term volatility that equities tend to exhibit.
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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whqqq : Precious metals and real estate are relatively safe, I think. If you don't have much money, you can invest in gold. If you have a lot of money, you can invest in real estate.
Ixy The Cat : obviously the OP has never actually used such strategies. in an inflationary environment the worst thing to do is go with a floating rate.