How to Profit from Inflation: Part 5

We’re back again with another week of thoughts to consider during times of inflation!

Oil and other commodities. Oil and related supplies are significantly more challenging to own directly than real estate and gold.

  • While you might be able to stick $10,000 worth of gold under your bed, 100 barrels of oil or 100 bushels of corn is a little tougher to store and sell when the time comes. 
  • It’s more convenient and easier to invest in an exchange-traded fund. This type of fund will own the commodity, invest in related industries, as well as invest in futures and swaps.
  • You can invest in futures yourself. You can also purchase stocks that will benefit from a rise in the price of the commodity. Consider not only those companies that benefit directly, but also companies that benefit indirectly.

Inflation-indexed bonds. Many of these can be purchased directly from the issuer. They can also be obtained via a brokerage account or through the investment in some mutual funds and exchange-traded funds.

Thanks for reading! Let us know if you have any questions. More content coming soon!

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