5 Investing Strategies That Actually Worked in High Inflation

Here are 5 investment strategies that worked historically in high inflation according to research. So that you can invest successfully in 2022.


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There is a lot of talk about which investments do better or worse in times of high inflation, but what’s really working, and what is just a personal opinion? Now I have has a look at what really works. So in this video, you will hear about investments with both higher and lower risk that have worked well historically during times of high inflation. Cause that’s what we do on this channel, base our videos on the latest economic research.

Regardless of whether inflation is high or low, we have to invest our money in some way so that the value doesn’t decrease. This also happens when inflation is normal, that is when it is around 2%, which is the inflation target of most developed countries. Regardless, the value of our money is halved in just over 30 years with a 2% inflation. So after 30 years, you only have half the purchasing power left. If 30 years ago you could buy a whole chocolate bar, now you can only buy half. Figuratively speaking of course, because the price of all goods does not increase and decrease exactly like inflation.

In the long term, stocks are a good hedge against inflation and have historically beaten inflation with several percent higher returns. But in the short term, they sometimes do not keep up with the inflation, as now, for example. The S&P500 is down almost 15% this year while we have an inflation of over 8%. So we are in reality down almost 23%, unfortunately.

But there are some investments that have historically performed better in regimes of high inflation, and I have found out which they are by, as usual, digging into the research literature on the subject.

References:
https://papers.ssrn.com/sol3/papers.c...
https://papers.ssrn.com/sol3/papers.c...

#inflation #economics #interestrates

Disclaimer:
This content is for educational and entertainment purposes only. Money with Pennies does not provide investment, tax, or legal advice. Money with Pennies may have an ownership interest in stocks or companies mentioned. Do not make buying or selling decisions based on this video. All investment involves risk and the possibility of loss. Past performance is not indicative of future results.