Is Inflation Today the Silent Assassin of Your Wealth?

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Welcome to the 162nd episode of the Alternative Investing Podcast!

In today’s episode, I’ll discuss how inflation affects you as an investor and give you three important strategies you need to consider to thrive in a high-inflation market. 

We cover:

  • How the Government Could Be Manipulating Inflation to Our Disadvantage 
  • The Real Impact of Inflation
  • How to Navigate the Tricky Landscape of Lending Deals, Equity-Based Deals and Developments
  • Assets That Can Weather the Inflation Storm
  • 3 Key Lessons Every Investor Needs to Consider to Survive the High-Inflation Market

If you’re a business owner or an investor who wants to learn how to protect and grow your wealth in the face of soaring inflation, then make sure to listen to this episode!

Show Notes:

00:00 – Intro

02:24 – The problem with inflation

04:29 – Inflation and Its Effect on Monetary Value

06:56 – The Underlying Issue with Storing Cash in Banks

09:32 – How Various Assets Respond to Inflation

11:26 – The Impermanence of Favourable Economic Conditions

13:27 – Avoid Overextending Your Finances in Pursuit of Investment Opportunities

15:40 – The Risk of Maintaining Minimal Cash Reserves

18:13 – Acknowledging the Emotional Component of the Current Market Condition

19:55 – Outro

As conversations around the rising cost of living intensify, it is crucial to discuss a rather critical economic concept – INFLATION. 

As a common thread linking the prices of food, fuel, goods, and services, inflation is often the culprit behind our anxieties surrounding financial sustainability.

Inflation is the general trend of increasing prices over a specific period. As inflation occurs, goods and services rise, reducing our purchasing power. 

A dollar holds less value as it costs more to buy the same goods or services. Essentially, the same amount of money buys fewer goods and services.

Sharp deviations from a moderate inflation rate can pose challenges for both consumers and investors. 

These deviations can cause significant economic disruptions and unpredictable effects on different asset classes, impacting people’s wages, the cost of borrowing money, and their ability to keep pace with increasing prices.

But the repercussions of inflation go beyond immediate concerns. Considering the long-term implications, especially for investments and retirement plans, is necessary. 

If investments lose value due to inflation, even while showing gains each year, those gains need to be discounted. 

In the same vein, if salaries increase annually but fail to keep pace with inflation, individuals are technically earning less money.

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