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How does inflation affect your investment portfolio?

After all, inflation doesn’t just affect current consumption, it also eats into investment returns and erodes wealth. There are different ways to protect an investment portfolio from high inflation. For example, Morningstar’s Christine Benz suggests that younger investors should maintain ample stock exposure.

Can you invest in real estate if inflation is high?

You can also invest in real estate, mortgage-backed securities, and collateralized debt obligations through exchange-traded funds, but these are risky investments. Several asset classes perform well in inflationary environments. Tangible assets, like real estate and commodities, have historically been seen as inflation hedges.

What to invest in during high inflation?

Here are some investment options to consider when thinking about what to invest in during high inflation. Buying inflation bonds, or I bonds, is an attractive option for investors looking for a direct hedge against inflation.

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