Inflation has absolutely skyrocketed.
The inflation rate – represented by the consumer price index (CPI) – rose roughly 7% in 2021.
That’s a 39-year high.
While the Fed tried to tell us that this inflation was “transitory,” we now know that’s not entirely true.
The supply chain problems and shortages we’ve been experiencing are certainly part of the picture.
For instance, thanks to the chip shortage, the cost of new vehicles went up 11% year over year… a problem that should resolve itself once the supply crunch stabilizes.
But the heavy money printing we’ve seen over the past two years will result in permanently higher prices for many of the goods we depend on every day.
In short, the government’s $5 trillion-plus “stimulus” is severely impacting normal people.
This is obviously deeply concerning. Money kept in a traditional savings account is losing value year after year because of inflation.
And with the recent volatility hitting the markets, many investors are wondering how to protect their finances…
So, in today’s essay, I’ll share some suggestions for guarding against inflation… and another opportunity to profit big over the coming year.
Dealing With Inflation
So what can we do in an inflationary environment like today?
There are a few steps we can take depending on our circumstances…
We can finance or refinance our home with a fixed 30-year loan at the lowest possible rate. Over time, we’ll pay back the loan with inflated dollars (devalued dollars).
And we can invest the money that we didn’t put into the house to make higher returns. Real assets, like property, are always a good store of value in inflationary times.
We can finance income-producing properties using fixed-interest loans. These could be rental properties or timberland. It’s the same reason as above, and the benefit is that land is a real asset.
We could invest in digital assets like cryptocurrencies, digital tokens, and digital securities. However, this asset class has a higher risk. So this kind of investment would require more diligence from investors.
There will also be digital assets backed by real assets, cash flows, dividends, or equity that could be smart places to allocate capital.
Precious metals like gold and silver might be interesting, but I’m not convinced. The U.S. printed more than $10 trillion during 2008–2016, but gold didn’t rise that much. And now, even with trillions of dollars of new stimulus spending, gold is still only around $1,800 an ounce.
Collectibles present another interesting asset class. Artwork, rare wine, vintage automobiles, rare watches, numismatics, and other collectibles have historically been excellent stores of value.
And the collectibles market is now racing into the digital age with non-fungible tokens (NFTs), which are swiftly becoming a mature market and an asset class all its own.
These are just a few options for readers to consider.
But you can do better by investing in the areas of the market that grow faster than the rate of inflation.
If we maintain large exposure to the highest-growth segments of the economy, it ensures that our wealth will grow faster than the devaluation of our currency.
And right now, I’m seeing an opportunity that is unlike anything else in the market.
A “Hidden” Opportunity
I know people are struggling with the increases in the cost of just about anything we purchase. This is especially painful given the current market volatility and pullback.
Having the markets and the value of our savings and our stock portfolio decline at the same time is just untenable.
That’s why, on February 16, at 8 p.m. ET, I’m arranging an exclusive private briefing for anyone concerned about their portfolio.
I’ll reveal exactly how we should tackle our investments in this environment…
And I’ll explain how to take advantage of a “hidden” investment opportunity in the technology sector… one that could enable investors to profit big from a trend that’s about to take off over the coming year.
At this briefing, I’ll also share what I’m doing with my own money… and reveal one of my favorite stocks for 2022 that could be an easy double.
So please, join me on February 16. I promise it will be worth your time.
You can go right here to reserve your spot for this exclusive briefing.
I’ll look forward to seeing you there!
Editor, The Bleeding Edge