The Inflation Curse: How to Protect Your Investments

Inflation was stable at around 2% for a long time in developed economies — until it was not. High rates of inflation can be irritating, and extremely high rates can be life-threatening. Inflation not only damages a country’s currency, but it can impoverish a whole nation. As an investor, your focus should be on earning a positive real return — a return adjusted for the effects of inflation. When inflation rates rise, you will want to keep doing that, and therefore you will need to find ways to protect your portfolio and ensure it earns enough. But there is a catch — different macro regimes and environments, and the specific causes and nature of the inflationary shock might require completely different actions.

This post is published on Medium.

Author: Nikolay

Founder of MoneyCraft