The Best Tips for Investing During Inflationary Periods
                     T H E B E S T T I P S F O R  
I N V E S T I N G D U R I N 
G  I N F L A T I O N A R Y
P E R I O D 
S
B Y L E V E L F I N A N C  I N 
G

In June 2022, the inflation rate in the US  touched an  
astounding 9.1%, a figure we haven’t seen in decades. It  
went down slightly in the following months, but it’s still 
well  above 7%.
There are several reasons why this is happening, starting  
with the fact that many companies couldn’t keep up with 
the  increased demand for goods and services after the  
Coronavirus lockdown. This had an obvious impact on  
prices. As if that wasn’t enough, the Russia-Ukraine conflict 
 contributed to a global increase in energy prices due to 
the  restrictions on imports of Russian oil.
According to various financial experts, the worst move is  
actually not to invest during inflation, as just leaving your  
money in your bank account, while prices are rising  
considerably, will reduce your real net worth. If you have 
one  hundred dollars in a bank account with a very low 
interest  rate, high inflation means that you can afford to 
buy fewer  and fewer products and services with that 
money.
Instead, you should invest cautiously so that it protects 
you  from the adverse effects of inflation while taking 
advantage  of the opportunities.
Inflation hedging refers to investing in asset classes that  
perform particularly well during inflationary periods. Here 
are  the most notable ones.
Gold - Historically, gold has been considered the ultimate  
investment to protect yourself against rising prices. That’s  
because it’s a real asset that tends to retain its value over  
time. While its performance has not been particularly  
outstanding in 2022 so far, it has still outperformed most  
assets since the beginning of the year, confirming its 
reliability  as a shield against inflation.
Treasury Inflation-Protected Securities, or simply TIPS, are  
government bonds with an interest rate that changes based  
on changes in the inflation rate. This, and the fact that the 
US   governments back them, make them one of the safest  
investment options during inflation. They are issued in  
maturities of 5, 10 and 30 years. Index-linked gilts issued by 
 the British government are also a valid alternative to TIPS.
Commodities - Buying commodities is another clever way 
to  protect your portfolio from inflationary pressures.
This is another major asset investors tend to look at during  
high-inflation periods. According to Forbes, investing in 
return-  generating real estate is the best move you can make 
against  inflation. That’s because, in this case, inflation can 
help you
increase your income and not just protect your investment 
from  devaluation. First of all, you can buy real estate with a 
fixed-  rate interest rate. As your income continues to rise due 
to  inflation, your monthly mortgage payment will become less 
and  less of a burden. Moreover, if you decide to rent your 
property,  you can benefit from the fact that rental income 
tends to keep  up with inflation or increase at an even higher 
pace.
If you want to benefit from the inflation hedging properties 
of  real estate investment but don’t have the necessary 
capital  or don’t want the hassle of landlord-tenant relations, 
you can  invest in a Real Estate Investment Trust, or REIT. 
This term  describes a fund that owns and manages a pool 
of return-  generating real estate assets. As an investor, you 
will receive  a dividend from the fund. As REITs are usually 
listed, you can  also decide to sell your share in the fund if 
you deem it  convenient.
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