How To Profit From Inflation: Part 2

Last week we talked about a couple of trends to keep your eye on during times of inflation, so here are a couple more. Thanks for reading!

  • Real estate is attractive during inflationary periods. The value of property tends to rise when there’s a period of inflation.
    • Owning property during times of inflation opens up the opportunity to generate higher rental income.
    • Rents are subject to inflation, so this is another attractive feature of real estate.
    • Rental income tends to rise to meet the increasing prices of goods and services in the marketplace.
  • Stocks can also be hedges against inflation. Most companies can successfully pass along the increased costs from inflation to their consumers. Because of this, stocks have the potential of keeping pace with inflation.
    • Consider that some stocks are better for this purpose than others.
    • People are still likely to continue purchasing diapers and toothpaste at the same rate as always, regardless of inflation.
    • The same might not be true for luxury or optional items. It’s an issue of wants versus needs.

Stay tuned for more on how to profit during inflation, coming soon!

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