Welcome to the first episode of The Architecture of Wealth, a podcast created for educational purposes where we help you give you the tools for all things wealth building.
In this episode, we address investing for inflation. During these unpredictable times, preparing your portfolio for rising rates and inflation is critical.
· Over longer periods, equities are a great inflation hedge.
· Most inflation hedges involve taking on risk.
· Commodities like food and metals can serve as a good hedge.
· Real assets, like real estate, can be a good inflation hedge, especially if related income streams can go up with inflation.
· Cons of real estate can be the risk of borrow and concentration; people tend to have rental properties near their homes.
· Gold is not the inflation hedge it used to be. Its role as an inflation hedge in the future is questionable.
· “Our society is built up around home ownership.”
· “Always think about what you are investing – whether it’s time or money.”
· “Gold is also something that used to be considered an inflation hedge; I find that difficult to swallow.”
· “We don’t have proof that gold and crypto are really good inflation hedges.”