Inflation is back, it’s very real, and it’s biting into the budgets of every household.
In this month’s client’s corner, we will be discussing how to protect your portfolio from inflation. Looking back at points in history where inflation was raging, real assets, like stocks have always been the best way to protect your wealth.
There is no such thing as an inflation-proof investment, but investors can take measures to protect themselves. Risk-averse investors, particularly those nearing and in retirement, will need to be especially careful of what inflation can do to their standard of living if their investments can’t keep pace with inflation. For equity investors, companies that are able to pass on their cost increases to customers and corporations that have low debt offer some safety in an inflationary environment.
Stick To A Plan, Stay Invested, Try To Avoid Emotional Bias.
Having a plan and sticking with that plan is essential. It can be easy to get sucked in by scary media headlines and hot stocks that are “going to the moon”, but the reality is that most of this is just noise. It is extremely important as an investor to remain cool, calm and collected and make your investment decisions based on your long-term goals and objectives. Rash decisions based on emotions can be devastating to your overarching retirement goals.
Check out our Stay Invested Calculator to see how missing out on the best performing months in the stock market can affect the growth of your portfolio.
Thinking about hiring a professional to help you implement a long-term financial strategy? We would be more than happy to set up a 30-minute discovery call to get a better understanding of your unique situation.
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