Market inflation is the decline in purchasing power of a currency over time that results in rising prices for goods and services. In other words, the value of a currency decreases in times of high inflation. Many factors contribute to the current rise in inflation including labor shortages, disrupted supply chain, pent-up demand, and rising energy prices. Inflation affects industries across all sectors and a number of investment types.
Conventional investments like stocks, bonds, and cash are less profitable in an inflated economy. That said, some types of alternative investments — real assets that do not fall into a conventional investment category — can do very well.
Our latest whitepaper, Investing in an Inflated Economy offers an in-depth discussion on why inflation is happening, what it means for real estate, how alternative investments fare well in inflated markets, and how you can protect your portfolio in an inflated market.
I invite you to access this valuable resource from our team and leave with a more solid investment strategy in times of high inflation.
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