Managing money when uncertainty becomes the status quoRecent research from Yieldstreet suggests a proactive approach to investing in volatile markets. Visit www.yieldstreet.com to learn more.
NEW YORK, June 28, 2022 (GLOBE NEWSWIRE) — With stocks falling due to 40-year high inflation rates, and analysts becoming increasingly divided on the future’s outlook, it can be difficult for even the most experienced investor to decide their next move.
This is what happens when uncertainty becomes the status quo, because the only thing worse than a negative market sentiment is an uncertain one. The good news, however, is that smart investment decisions can be made regardless of rising inflation, according to online investment platform Yieldstreet.
Of course, the first step to deciding on an investment strategy during peak inflation is to understand the options. Here are just a few ideas:
Invest in Real Estate
High inflation has a significant impact on the average consumer’s purchasing power, which can result in the real estate market slowing down in the short term. Having said that, the essential nature of real estate makes it particularly conducive to an accelerated rebound when economic conditions improve and inflation is eventually brought under control. This doesn’t mean investors need to break the bank and buy a new property, and in fact there are more ways to get involved in real estate investing today than ever before. For example, investors can seek out a crowdfunding platform that allows them to own yield-generating shares in a rental property, or earn regular passive income by buying into a real estate investment trust (REIT).
Seek Refuge in a Traditional Savings Account
With rising inflation often comes more attractive interest rates on traditional savings accounts, and in turn an opportunity to store cash at a healthy yield until the market recovers. Regular income and cash accumulation in general is an important aspect of investing in virtually any economic environment, and even more so during peak inflation. After all, it’s wise to cut back on spending when the average price of goods is unreasonably high, and even wiser to keep money in an account that facilitates growth with almost no associated risks.
Diversify the Portfolio With Alternative Investments
One common mistake that new investors make is assuming that their options are limited to the purchase of publicly-traded stocks. This is a perfectly understandable misconception, because until recently, the ability to invest in the private sector and other less traditional assets has been reserved for the ultra-wealthy. Fortunately, amendments to old legislation have allowed anyone to get involved in the investment of their choice, and investing in alternatives can be a great way to balance out losses in the stock market. This might include investing in multiple asset classes such as art and corporate financing through Yieldstreet’s Prism Fund, or gaining balanced and professionally managed exposure to cryptocurrencies with the platform’s Enhanced Crypto Fund.
Whatever is decided, diversification with alternatives can be a game-changer, particularly when inflation is high.