I recently listened to a discussion on which assets could actually be better to protect or even profit from inflation. This comes as most of the developed world is suffering the consequences of a soaring inflation and several pinch points in the supply chains and the international trade, such as a massive demand for freighters and severe queueing in ports.
How would you defend yourself from inflation:
- Buy bitcoin
- Buy more commodities.
- Buy REITs or real state.
- Buy stocks of listed companies.
- Buy art.
- ... any other?
Inflation is inevitable as much as we don't want it. So it's really better to store your funds in something that is lesser prone to inflation. Personally, I am into bitcoin investment and real estate because I think these two are of great store of value. If ever things go haywire in the future I will still have my funds readily available in bitcoin and I will still have assets such as real estate properties that I can sell with higher value because it appreciates as time passes by.
Bitcoin and real estates are my personal picks. Maybe I will consider stocks if ever I got the chance to familiarize its workarounds. But as of now, I'm sticking with these two as my way of defense from inflation. Commodities are nice as well because they can be traded with other goods. This is ideal to either be in buy and sell or hold depending on its type. Art would be last on my list because I don't think people would prioritize this thing the moment inflation arises. Except of course if the art is something remarkable, famous, and extraordinary. If this is the case, its value can appreciate as well and can be bought by the elites at a higher price making it a good way to generate profit over time.