NEW YORK, June 28, 2022 (GLOBE NEWSWIRE) – With stocks plummeting over 40 years of high inflation rates, and analysts are increasingly splitting on the outlook, most experienced investors may find it difficult to make their next move. This is what happens when uncertainty is normal, because uncertainty is worse than negative market sentiment. The good news is that smart investment decisions can be made regardless of rising inflation, and online investment platforms such as YieldStreet provide easy access to alternative investment opportunities when needed.
Of course, the first step in determining 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 purchasing power of the average consumer, which causes the real estate market to slow down in the short term. The need for real estate is particularly favorable for accelerated rebounding when economic conditions improve and inflation is finally brought under control. This does not mean that investors need to break the bank and buy a new property, and in fact there are more ways to invest in real estate today than ever before. For example, investors can look for a crowdfunding platform that allows them to own yield-generating shares in rental property, or earn regular passive income by buying into a real estate investment trust (REIT).
Take refuge in a traditional savings account – With rising inflation, more attractive interest rates fall on traditional savings accounts and offer the opportunity to raise money in healthy yields as long as the market is recovering. Regular income and cash accumulation in general are the key to investing in virtually any economic environment, and even in times of high inflation. After all, it is wise to cut costs when the average price of goods is unreasonably high, and it is still wise to put money in an account to facilitate growth without any associated risks.
Diversify the Portfolio with Alternative Investments – A common mistake new investors make is to assume that their options are limited to buying 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 was reserved for the very rich. Fortunately, old legislation amendments have allowed anyone to invest in their choice, and investing in alternatives is a great way to balance losses in the stock market. This may include investing in multiple asset classes such as art and corporate financing through YieldStreet’s Prism Fund, or obtaining balanced and professionally managed exposure to cryptocurrencies with the platform’s enhanced crypto fund. Whatever decision is made, diversification with alternatives can be a game-changer, especially when inflation is high.
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