Inflation and protecting you wealth

[paxmao]

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?

[mk4]

I’m personally invested in a mix of those assets, except gold and art, and kinda heavier on bitcoin(mostly because of privacy and self-sovereignty). I’d rather diversify a bit to protect myself from all sides; simply because we’re in uncharted territory economy-wise, and we can’t say for sure how bitcoin will perform in a really bad economic situation.

[Ucy]

...
....
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?

I think Bitcoin/crypto should be the foundation for preserving value for people who are more dependent on technology. So, you can buy those things listed below Bitcoin and have lots of them preserved in Bitcoin/Cryptocurrency for the sake of decentralization and other important features of Bitcoin. Centralization is part of what's is causing the economic failures but that doesn't mean Bitcoin will solve it all. There are lots of things that need to be done which have been mentioned on this forum several times that haven't been done yet.
If people know the truth about how valuable the forum is due to what IS here which they ignorantly ignore they would start taking the ideas shared in not-too-distant past very seriously. Our time is short. Don't be caught by the storm unexpectedly, because it will happen unexpectedly especially to those who didn't prepare.

[mu_enrico]

Inflation is really a pain in the ass, especially with a lot of helicopter money around the world. While BTC is a pleasant way to store your wealth, but the volatility is also a problem. If you can buy low all the time, it's great! But sometimes you have excess money when the price is not "sexy." Forcing to store your excess money in BTC in this period is a big no for me. Perhaps storing it first in gold, and then convert it into BTC when the price is "right" is a good idea.

Before Covid shit, I invest in my own business for expansion, but it's not feasible at the moment.

[bitmover]

- Buy stocks of listed companies.

As stock-picking may be risky, I think you should consider buying ETF (Exchange Traded Funds). They follow indexes, such as SP500, World MSCI, etc.

One of the most popular ETF is SWDA, which is a low-cost ETF  which contains about 1500 stocks of different countries over  23 developed countries in many different continents (covering 85% of companies in those countries).

It is an accumulation fund, which means that the dividends will be automatically reinvested in the ETF composition.

- Buy art.

Personally, I don't think this offer any kind of protection at all. Especially when thinking about liquidity and real use... I would never pay a lot of money in any kind of art.
Maybe I am to ignorant in that field, however.

[Hydrogen]

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?

They all have their pros, cons and risks.

Gold, silver and precious metals are risky as central banks HODL and control an overwhelming proportion of supply. They can move the price anyway they like. Concerns of counterfeit bars and coins have plagued markets in recent times. Which have only contributed to market uncertainty and added fear for buyers and traders.

The risk of commodities is illustrated in recent cases where large commodities shipments were subject to fraud. The media has published many stories recently about shipping disasters and entire cargos lost. As if it were completely normalized for a few containers to fall overboard whenever ships went to sea. These sentiments deter the concept of commodities being a reliable asset for inflation protection. (For those who take delivery of commodities anyway which is generally the arrangement we would expect for long term inflation protection)

High inflation could be correlated with whales dumping their holdings en masse to protect themselves. And capital flight whereby the wealthy pull their money out of a failing nation's economy to invest it in the economy of a nation whose economy is more stable. Which rules out stocks and assets pegged to the economy. Something similar might be said of real estate, although to a lesser degree. In some cases the value of real estate could plummet far enough to become undervalued and a buy.

Bitcoin is definitely one of the better options.

....


Don't forget EU residents bought electronics (things like big screen TVs) in an effort to curb expected euro inflation, back when greece's debt issues 1st came to light.

At some point, it could be less about protecting the value of wealth and more about survival. Having basic necessities: food, water, shelter, electricity, etc could be the goals we end up striving for.

[so98nn]

Saving ourselves from the inflation and buying all of those assets is closely related and I don't think any of those can help us from inflation?
Are we forgetting that if any inflation happens with the fiat (ex. USD) then it will have direct and indirect effect on the bitcoin too! Even an art which someone owns will be useless because it's the currency which has got affected with the inflation and thus things which we will buy would be too costly. i am pretty sure we will not be focusing on buying the art in those periods?

Bitcoin? Well whats the point here! It would be useless to buy and store anything in it's form. All one can do is keep saving the fiat itself and wait for the inflation to fed away.

[arallmuus]

I wrote my personal opinion on the listed option below. Personally will choose bitcoin over all of these but I do have some other stuff aside from bitcoin though such as gold

- Buy bitcoin

High volatility and definitely not an option that an average joe would go for. High risk high return though

- Buy more commodities.

Most people will go for this option, especially gold. Its pretty much the safest option that one could get but the return is pretty small but yeah its enough if you want to safeguard your cash from inflation

- Buy REITs or real state.

Evergrande's bankruptcy will make people think twice on going all in on real estate nowadays.

- Buy stocks of listed companies.

Second best option after commodities. Basically this is what most people are choosing nowadays

- Buy art.

Art? as in 'art' or 'NFT' ? Probably the worst option, not even going to consider this

[Rikafip]

- ... any other?

I know some people that are buying luxury watches  (Omega, Rolex etc) as a sort of investment. Allegedly they even increase in price once each of the series is sold out.

I am personally still holding majority in BTC, but plan is to get some real estate too, just have to decide what and where. Mostly likely it will be apartment that I can rent via airbnb in the meantime.

[CryptopreneurBrainboss]

I'll just say we diversify and those assets are the best ones to do so with. You basically covered all the sectors of the economy and we do have also a high speculative assets like bitcoin in the mix to spice up your portfolio. Just a circle of bitcoin price increase could cover up for those other asset if they weren't doing so great and same can be said about the combination of other assets if bitcoin was receiving some backlash.

I'm a big fan of art (painting must especially) and I mean vintage ones and not the NFT been over hyped and over price all over the community. Rael estate is a nice one as people will always need accomodation (shelter) as long as they're alive. Same goes for commodity as well, it's not always about the securing of your investment and making yourself rich at times but actually investing in things that contributions to the betterment of society.

[mindrust]

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?

Bitcoin itself is enough probably. Why complicate things further? It is not needed. Keep it simple. The other choices are also not bad though, with one exception, "art". I don't understand art and I don't invest in something I don't understand. I don't know how to value art so I wouldn't be able to sell it from the right price when I decide to sell it so I wouldn't put any money there. You probably can't lose money with the other choices.

[Kyraishi]

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?

Commodities may sound like a good idea, and so would art.

However, I would say that these are generally illiquid, or you are buying paper versions of commodities which makes it not worthwhile as a hedge.

Stocks/REITs are definitely intriguing but depend on the fiat ecosystem to survive. Cryptos is the logical option to go with out of all of these.

[Fatunad]

I’m personally invested in a mix of those assets, except gold and art, and kinda heavier on bitcoin(mostly because of privacy and self-sovereignty). I’d rather diversify a bit to protect myself from all sides; simply because we’re in uncharted territory economy-wise, and we can’t say for sure how bitcoin will perform in a really bad economic situation.

Same here, even though im really that optimistic with bitcoin or crypto as a whole but still i do consider out other investments on traditional aspect on where you could really somewhat able to deal with both
things without minding or focusing that much on a single point.Diversify or try to divide it up because you wouldnt really know on what would happen next and if you do just focus
on one then once it do fails or does have big problem then you wouldnt really be having any other options.

[Coyster]

How would you defend yourself from inflation...

It actually depends on how much one has, or what skill or service one can render, what we must understand is that, in as much as people may want to retain the value of their funds from inflation and hyperinflation, many can't actually achieve that due to insufficient/lack of funds. In my opinion, since my knowledge about Bitcoin investment is constantly developing, then I'd definitely choose it as a defense against inflation, I believe and understand the network, thus it seems to be the best option for me. The right thing for people to do is to invest in what they believe to last for the long period, be it Bitcoin, stocks, other commodities, etc. I really hope all this talk about inflation does not get to the worst stage possible, cause then we'd prolly not be talking about investments, but on how people will be able to foot their bills and meet basic needs.

[livingfree]

Any investment that seems to be a way to be against inflation is a good collection to your asset. Bitcoin is the top and my 2nd choice is real estate.

I'm not into stocks or any company owned asset.

You have forgotten to mention about precious metals too/jewelry.

[sheenshane]

Inflation sometimes hits on the market economies and we have an investment that could be anti-inflation assets.  Of all mentioned by OP can protect you from inflation during inflationary climates in market economies but I think only Bitcoin can give you a truly secure asset that you have your own full control of.

I mixed portfolio will put you in a safe place of investment, something like 65/35 stock, real state, and Bitcoin investment.  As they say, don't put all your eggs in one basket, and might this strategy will truly give you protection.

[Darker45]

Bitcoin, of course, is on top, although it cannot be denied that its volatility could mean something else could be better in one way or another.

I tend to avoid investing in real estate trusts not only because of all the hassles that go along with it but also of the risks. I'd rather just invest in a hard real estate property myself.

Jewelries could be an option also.

Art and collectibles are also options but one has to be meticulous in choosing which ones would remain in-demand after decades.

[fiulpro]

All of these does sound great, but for me the real answer would be :

Educating yourself.
If you do invest in your education then there is literally no way that you are going to fail in years ahead.

Planning.
Planning for your future considering all the options and at the same time realizing that you have to make plans in advance for the adversity.

Inflation is a necessary evil.
One must understand that even though Inflation might seem negative but at the end of the day it's much needed for a healthy economy.

Investing is a great way but then again investing in cryptocurrencies should be considered long term investments hands down. Plus there are a wide variety of cryptocurrencies available in the market. You need to analyze the market and look for good trading pairs as well. BTC-ETH would be my all time favorite, their synergistic relationship is too strong.

Investing in real estate right now is not a good idea, since during the COVID even though the prices went down there are risks associated. Wait for a stable price then go for it.

[Strongkored]

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 a scary thing and is often ignored by many people, especially those who do not aware the importance of investing
other than in the form of Bitcoin, commodities (gold) and stocks are on my list, while for real estate I do not yet have the financial ability to start investing there, all the three I choose because can be owned even with limited funds.

[Obito]

I’m personally invested in a mix of those assets, except gold and art, and kinda heavier on bitcoin(mostly because of privacy and self-sovereignty). I’d rather diversify a bit to protect myself from all sides; simply because we’re in uncharted territory economy-wise, and we can’t say for sure how bitcoin will perform in a really bad economic situation.

Gold is fricking expensive to keep, most arts in the market are either expensive because it's a master piece or it's expensive because it's appraisal is overvalued because it was owned by a rich person that has a connection to the appraiser. For me though, I only have bitcoin as an investment but that will eventually becomes different because I plan to slowly diversify my investments too.