During times of high inflation you need to be investing in “inflation-proof” stocks – those companies that won’t feel the pain during periods of high inflation.
So What is the Best Investment During High Inflation?
When shopping for an inflation-proof stock, look toward big retailers – specifically those that deal in the discount space and sell life’s necessities. The rationale behind this is quite obvious. People will spend their dollar where they feel they can get more for their buck.
Some of these retailers would include Costco and Walmart.
Along the same lines of discount retailers are the utility and energy companies. Even during times of high inflation, people need to plug-in their electronics and heat their homes. This makes utility companies a great investment during times of high inflation. Some companies that fall into this realm are: UNS.
Gold is a great investment during times of inflation. Gold is often seen as “the ultimate hedge”
During times of inflation, slow and steady may be the way to go. According to the Federal Reserve, one month CD Rates beat the CPI in nine of 14 high-inflation years.
The fact of the matter is that is is very difficult for investors to find a clear winner when inflation strikes and often times investors merely try to minimize the loses, and hang on until inflation eases.