Building a conservative investment portfolio and suddenly one witness that most of them have been eaten up by the Inflation bug leaves a bad taste on the investing fraternity which is very hard to contend with. Relying on external forces could make one heavily dependent on the numbers and downplay the portfolio and lose all the money, it is always imperative to have a detailed and keen eye during inflationary period is important so that one can track the movement in long-term bonds, securities, funds which could be overrated and hyped by external market forces.
Can we invest in inflation?
Investing during an inflationary period sounds weird but one has to play their decisions right, and with a detailed study can make a good back up to survive the jolts.
- the high-income sectors like telecommunication, utilities should be steered clear away from, investing in the real estate’s again could be good, only if the bank or mortgage rates are not increased, the commodity markets could be a tricky affair
- investing in sectors which are not highly impacted by inflation could be not many but they serve as viable options to survive in the auto mobile industry, energy, and financial products which are not only cheap way to invest , there are economical and price sensitive to yield good profits during inflation period too
- investing in municipal bonds which have been defaulted and up for buying are better options than investing in treasuries and bonds when one has affixed amount for investment
- Gold investment is again a better option as the demand for the yellow metal never falls; there are gold funds, jewelry, bullion and futures which are the best hedge funds to strive the inflation fears. As the interest rates are higher the strategy to invest in gold is a better way to be protected against all odds of the pressure of inflation.
- deep discount bonds, retail discounts are much-flocked investment area during the period of inflation to be protected against the weak investments, and discounted offers are always on demand as they get to buy more retail stock with the same amount, which would otherwise not have been possible.
Technically the investments are not based on the funds, but moving it to more profitable ventures to get a positive outcome during the inflationary period without losing out the core value of the portfolio.