Since last year, governments and central banks around the world have been flooding the markets with money to fight the economic impact of the economic meltdown in 2020. Since then, one of the most frequently mentioned topics in the financial news is inflation. Almost every day, finance professionals and economists pop up warning that all the “money printing” will trigger a higher inflation. You can already see the impact of that money printing on commodity prices. Commodities like lumber, corn or palladium have already started skyrocketing in 2021. So much so that in Berkshire’s latest shareholder meeting, Warren Buffett said that he can already see “very substantial inflation”! And that's bad because commodity prices are an early indicator of inflation. There are other inflation indicators such as the CPI, which stands for Consumer Price Index. The CPI represents a basket of various goods and services. The biggest expense group in that basket is housing which includes rent and utility bills. Other expense groups are transportation, food and beverages, medical care costs, educational costs and more. This basket tries to replicate the spending behaviour of the average American. Each cost item in the basket is tracked by the Bureau of Labor Statistics month by month to see how the costs for these items have changed. Based on that, the CPI will move up or down. If that total basket was worth 100 dollars in year 1 and its value goes up to 102 dollars, then this would mean 2% inflation. Another inflation indicator is the rate of change of the money supply. In the US, money supply is measured by the M2, which tracks the cash and bank deposits in circulation. All the centrally organised money printing has had a knock-on effect on the M2 money supply already. In 2020 alone, the M2 money supply in the US went up by an unbelievable 29%! And increased money supply could lead to higher inflation. However, another part of the inflation formula is velocity of money. Velocity of money indicates how many times an average dollar is used to buy goods and services. With large amounts of stimulus packages being launched in economies all over the world to keep the people and companies afloat throughout the economic meltdown, people and investors are worried more than ever about the potential of uncontrollable inflation. However, there are multiple ways how you, as an investor, can actually profit in times of high inflation. In this video, we will look at asset classes and examine how they performed in previous periods of high inflation. From 1972 to 1983, the US had its highest inflation rates of up to 15% per year. If you want to know how real estate, stocks, gold and debt instruments have performed in such an extreme, high-inflation environment, then check out this video! ⏰⏰ Timecodes ⏰⏰ 0:00 Intro 0:56 Inflation Indicators 2:59 No 1: Real Estate 5:12 No 2: SOME Stocks 7:11 No 3: Gold 8:53 No 4: Convert Debt From Variable to Fixed Interest 9:59 Summary 👉 SUBSCRIBE for more free financial education that will help you to build long-term wealth: 📷 FOLLOW me on Instagram to get even more financial education: DISCLAIMER: This video is for educational purposes only and merely cites my own personal opinion. In order to make the best financial decision that suits your own needs, you must conduct your own thorough research and seek the advice of a licensed financial advisor if necessary. #Inflation2021 #StimulusCheck #StimulusUpdate #InflationHedge #2021Inflation #InflationProtection #InflationStocks #FEDInflation #CPI #QuantitativeEasing #FinancialEducation #StockMarketTips #InvestingTips #StockMarketInvesting #InvestingForBeginners...(read more)
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Inflation is a term used to describe the increase in prices of goods and services over a certain period of time. In 2021, we are currently witnessing a huge rise in inflation rates, which is affecting the global economy. This means that it is important for investors to identify ways to make the most out of this trend. For those seeking to profit from the upcoming inflation explosion, there are several investment strategies that one can consider. 1. Invest in commodities One of the best ways to benefit from rising inflation is by investing in commodities such as precious metals like gold, silver, and platinum. Inflation can cause the value of fiat currencies such as USD or EUR to decline, and therefore by investing in commodities, it is possible to hedge against this risk. Commodities are known for their ability to maintain their value even when traditional investments are affected by inflation. Consider allocating some of your portfolio to commodities to benefit from the long-term inflation trends. 2. Invest in real estate Real estate is another great investment avenue that can help you to benefit from inflation rates. When inflation rises, the price of homes and real estate generally increases as well. Investing in this sector can help you to add a valuable asset to your portfolio that can appreciate over time. However, it's worth noting that not all property investment opportunities are equally profitable, and market conditions such as high-interest rates can negatively affect the real estate sector. Therefore, it is important to do extensive research before making any investment decisions. 3. Invest in stocks Stocks are a classic investment option that can help you to gain exposure to the markets and benefit from inflation rates. When inflation rises, industries with high pricing power and those widely recognized for their financial stability and profitability tend to perform well. This makes blue-chip stocks such as Coca-Cola, Johnson & Johnson, and McDonald's a great option for those seeking to invest in stocks in 2021. Additionally, investing in ETFs is another way to gain exposure to diversified portfolios of high-quality stocks. It is important to note that investing in stocks carries some level of risk, and it is always prudent to seek professional advice before making any investment decisions. 4. Invest in cryptocurrencies In recent years, cryptocurrencies have emerged as a popular option for investors seeking to capitalize on inflation trends. Bitcoin, for instance, has been identified as a potential hedge against inflation, as its value tends to rise when traditional currencies lose value. Other cryptocurrencies such as Ethereum and Dogecoin have also gained momentum, but it's important to do your own research and make informed decisions. Final thoughts Inflation is a reality that investors have to take into account when making investment decisions. With the right strategy, however, it is possible to turn inflation into a profitable opportunity. As always, before making any investment decision, it's best to do some research or seek professional advice. https://inflationprotection.org/investment-strategies-for-profiting-from-inflation-in-2021-a-guide-to-huge-gains/?feed_id=81915&_unique_id=6421bbb28a8df #Inflation #Retirement #GoldIRA #Wealth #Investing #cashistrash #consumerpriceindex #consumerpriceindex2021 #cpi2021 #Goldinflation #hedgeagainstinflation #hedgeinflation #howtobeatinflation #howtohedgeagainstinflation #howtohedgeinflation #howtoprofitfrominflation #inflation2021 #inflationcommodities #Inflationhedge #inflationinvestingstrategies #inflationprotection #inflationrealestate #inflationstockmarket #inflationstocks #stimuluscheck #stimuluscheckupdate #stimulusupdate #InvestDuringInflation #cashistrash #consumerpriceindex #consumerpriceindex2021 #cpi2021 #Goldinflation #hedgeagainstinflation #hedgeinflation #howtobeatinflation #howtohedgeagainstinflation #howtohedgeinflation #howtoprofitfrominflation #inflation2021 #inflationcommodities #Inflationhedge #inflationinvestingstrategies #inflationprotection #inflationrealestate #inflationstockmarket #inflationstocks #stimuluscheck #stimuluscheckupdate #stimulusupdate
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