The United States Bureau of Labor Statistics reported that inflation increased by 7.5% in the last 12 months. This means that your money lost purchasing power. Therefore, to help protect your economy, here are three investment options where you could have profits that exceed the rate of inflation.
Real estate
Real estate is traditionally a good investment during periods of higher inflation, as property values tend to rise. This means landlords can charge more for rent, to keep up with rising inflation.
You do not need to buy a home to invest in this area, real estate investments can be made through REITs (also known as real estate investment trusts) or through mutual funds that invest in REITs.
Stocks
Stocks can be a good option to combat inflation in the long term, although their prices may decline in the short term if inflation rises .
If you are new to investing, you can start by opening an account through a brokerage platform easy to use, like eToro.
In some you can make operations without commissions. In addition, most offer different investment options, are easy to use, have customer service and have educational resources.
Remember that share prices are often transitory, so what would not be convenient for you to make drastic changes in your investment portfolio, but to be patient and more than anything to invest in the long term.
Bitcoin and cryptocurrencies
Bitcoin is often called the ‘digital gold’ and, in theory, it should protect against inflation because its supply is limited. In other words, demand is expected to exceed supply, which could increase the price exponentially.
Take into account that Bitcoin, and in general all cryptocurrencies, are still a very volatile market, so its price can go down and up dramatically.
This means that it would not be recommended as a short-term investment but rather for the medium and long term. That is, to have profits in 5 or 10 years.
Other cryptocurrencies in which you could invest would be Solana and Ethereum.
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