{"id":13317,"date":"2024-08-27T12:20:35","date_gmt":"2024-08-27T12:20:35","guid":{"rendered":"https:\/\/www.vtmarkets.com\/blog\/?p=13317"},"modified":"2025-07-07T09:52:49","modified_gmt":"2025-07-07T09:52:49","slug":"top-4-assets-to-inflation-proof-your-portfolio","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.net\/de\/learn\/top-4-assets-to-inflation-proof-your-portfolio\/","title":{"rendered":"Top 4 assets to inflation-proof your portfolio"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/blog\/wp-content\/uploads\/sites\/11\/2024\/08\/shutterstock_2352168095-1-1024x576.jpg\" alt=\"\" class=\"wp-image-13319\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p>Even though inflation has cooled down a lot since its peak of 9.1% in June 2022, it&#8217;s still remains high, and there&#8217;s no telling if it might creep up again.<\/p>\n\n\n\n<p>Elon Musk and Warren Buffett have some similar advice for dealing with inflation. Musk once tweeted that when inflation is high, it&#8217;s usually better to own things like a home or <a href=\"https:\/\/www.vtmarkets.net\/de\/cfd-shares\/\" target=\"_blank\" rel=\"noopener\" title=\"stocks in companies\">stocks in companies<\/a> you believe in, rather than holding onto cash.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">What are your thoughts about probable inflation rate over next few years?<\/p>&mdash; Elon Musk (@elonmusk) <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1503123611988766730?ref_src=twsrc%5Etfw\">March 13, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high.<br><br>I still own &amp; won\u2019t sell my Bitcoin, Ethereum or Doge fwiw.<\/p>&mdash; Elon Musk (@elonmusk) <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1503222294277197829?ref_src=twsrc%5Etfw\">March 14, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><strong>We\u2019ve previously covered why cash isn\u2019t king.<\/strong><\/p>\n\n\n\n<p><em>Check out this article to see how inflation quietly erodes your wealth with fiat currency: <a href=\"https:\/\/www.vtmarkets.net\/de\/learn\/cash-is-not-king-how-inflation-robs-you-silently\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Cash is NOT king: How inflation robs you silently<\/a><\/em><\/p>\n\n\n\n<p>The second half of Musk\u2019s tweet echoes investing wisdom from Warren Buffett, CEO of Berkshire Hathaway. Back in 2009, during the tail end of the Great Recession, Buffett told shareholders that one of the best ways to guard against inflation is to own a piece of \u201ca wonderful business.\u201d<\/p>\n\n\n\n<p>His reasoning? No matter what happens to the dollar&#8217;s value, a great business will always have demand for its products.<\/p>\n\n\n\n<p><strong>In case you missed, here\u2019s another reason why the dollar could be losing its value in the near future. <\/strong><\/p>\n\n\n\n<p><strong>Read it here:<\/strong><a href=\"https:\/\/www.vtmarkets.net\/de\/learn\/what-forex-traders-need-to-know-about-brics-de-dollarisation-efforts\/\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong> <\/strong>What forex traders need to know about BRICS\u2019 de-dollarisation efforts<\/a><\/p>\n\n\n\n<p>Not all investments react the same way to inflation. Some are pretty much immune to its effects, and a few might even thrive when inflation rises. Here are 4 inflation-proof investment strategies to keep you at ease during economic uncertainty.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>4 inflation-proof strategies to help you sleep better during economic uncertainty<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Gold<\/strong><\/h3>\n\n\n\n<p>Gold is often seen as a hedge against inflation, especially in countries where the local currency is losing value. In these places, people turn to gold or other strong currencies when their own currency fails. Since gold is a tangible asset, it generally holds its value.<\/p>\n\n\n\n<p>However, gold isn\u2019t a perfect inflation hedge. When inflation goes up, central banks usually raise interest rates. In this environment, holding gold, which doesn\u2019t generate yields, can be less advantageous compared to assets that do, especially when interest rates\u2014and yields\u2014are high.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Commodities<\/strong><\/h3>\n\n\n\n<p>Commodities are an essential part of the global economy, encompassing items like grain, precious metals, oil, natural gas, and even foreign currencies and financial instruments. They often serve as a barometer for inflation, with their price movements reflecting broader economic trends.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Commodities have shown resilience to bouts of inflation and have been a hedge for bonds and stocks, according to Goldman Sachs Research. They also offer protection for portfolios to volatility from elections and geopolitical events. <a href=\"https:\/\/t.co\/mjU2LETgwF\">https:\/\/t.co\/mjU2LETgwF<\/a> <a href=\"https:\/\/t.co\/f00Qc1FhZV\">pic.twitter.com\/f00Qc1FhZV<\/a><\/p>&mdash; Goldman Sachs (@GoldmanSachs) <a href=\"https:\/\/twitter.com\/GoldmanSachs\/status\/1811082963393651027?ref_src=twsrc%5Etfw\">July 10, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>When the price of a commodity rises, it generally indicates increased production costs, which can, in turn, drive up the prices of goods derived from these commodities. This relationship links commodities closely with the Consumer Price Index (CPI), a key measure of inflation. As commodity prices climb, they can contribute to higher CPI readings, signaling rising overall inflation.<\/p>\n\n\n\n<p>However, commodities are also known for their volatility. Prices can fluctuate widely due to changes in supply and demand, geopolitical events, or economic conditions. For instance, disruptions in oil supply from geopolitical conflicts can cause oil prices to spike, influencing inflationary pressures across various sectors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Treasury bills, notes, and bonds<\/strong><\/h3>\n\n\n\n<p>US Treasury bonds are debt instruments issued by the U.S. government, and they pay interest as well as return the principal amount when they mature. They\u2019re favoured because they have a high credit rating and are considered very safe, making them a reliable choice for consistent income, especially for retirement portfolios.<\/p>\n\n\n\n<p>However, the value of U.S. Treasuries is influenced by interest rates, which change in response to inflation. When interest rates rise, Treasury prices usually fall, and when rates drop, Treasury prices generally increase.<\/p>\n\n\n\n<p>Bills, with maturities of one year or less, are sold at a discount and have interest rates based on their price. Notes and bonds have fixed interest rates. The value of these securities drops when interest rates rise because new securities offer higher rates. Longer-term bonds are more affected by interest rate changes than shorter-term ones, so they can be more volatile.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Cryptocurrencies<\/strong><\/h3>\n\n\n\n<p>Cryptocurrency, especially Bitcoin, is a solid bet against inflation because it has a fixed supply of 21 million coins\u2014unlike fiat money, which can be printed endlessly. Since Bitcoin isn\u2019t controlled by any government, it stays stable even when traditional currencies are losing value. <\/p>\n\n\n\n<p>For example, people in Venezuela used Bitcoin to protect their savings when their money lost value. Plus, Bitcoin is easy to access and trade, making it a smart choice to keep your wealth safe when inflation hits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>A diversified portfolio is the best hedging strategy<\/strong><\/h3>\n\n\n\n<p>Don\u2019t just hold on to cash! Market conditions can change unpredictably, it\u2019s important to diversify your portfolio and assets. <\/p>\n\n\n\n<p>Even if inflation isn&#8217;t a concern, having a range of assets across your portfolio helps manage risk and capitalise on various opportunities.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" target=\"_blank\" rel=\"noopener\" title=\"Explore our wide range of assets to inflation-proof your portfolio now\">Explore our wide range of assets to inflation-proof your portfolio now<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Even though inflation has cooled down a lot since its peak of 9.1% in June 2022, it\u2019s still remains high, and there\u2019s no telling if it might creep up again.<\/p>\n","protected":false},"author":2,"featured_media":13318,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7,25],"tags":[],"class_list":["post-13317","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-learn","category-trading-techniques"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/posts\/13317","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/comments?post=13317"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/posts\/13317\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/media?parent=13317"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/categories?post=13317"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.net\/de\/wp-json\/wp\/v2\/tags?post=13317"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}