No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Friday, October 31, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Money

7 Assets That Thrive During Inflation (And 3 That Tank)

by TheAdviserMagazine
4 months ago
in Money
Reading Time: 6 mins read
A A
7 Assets That Thrive During Inflation (And 3 That Tank)
Share on FacebookShare on TwitterShare on LInkedIn


Image source: Unsplash

Inflation has a way of making us all feel a little poorer. As groceries climb, gas prices spike, and everyday essentials take a bigger bite out of our paycheck, it’s natural to wonder: What can I invest in that actually benefits from this?

While most people fear inflation, savvy investors understand that not all assets suffer during rising prices. In fact, some investments tend to perform better when inflation is high. These inflation-resistant assets either increase in value, generate reliable income, or protect your purchasing power in meaningful ways.

At the same time, some assets quietly lose ground, destroying your wealth as inflation eats away at their real value. Let’s explore 7 assets that typically thrive during inflationary periods, and three that may quietly tank while you’re not watching.

1. Real Estate

Real estate is one of the most reliable hedges against inflation. Why? Because property values and rental income often rise along with the cost of living. As prices increase, so does the value of land and homes, especially in desirable areas.

In addition, landlords can raise rents over time to match inflation, giving property owners an opportunity to maintain (or increase) their cash flow. Meanwhile, if you hold a fixed-rate mortgage, your monthly payment stays the same, even as everything else gets more expensive. That means your housing costs shrink relative to inflation.

Commercial real estate and residential rentals both tend to hold up well, particularly when demand for housing is strong.

2. Commodities

When inflation rises, the price of raw materials typically goes up. That’s why commodities like oil, natural gas, gold, wheat, copper, and even livestock can be powerful inflation hedges. They reflect the rising costs of production and consumption across the economy.

Commodity-focused ETFs and mutual funds offer a way to get exposure without buying physical goods. Energy and agriculture, in particular, tend to spike during periods of high inflation, especially when global supply chains are strained. But commodities can be volatile, so they’re best used as part of a diversified strategy, not your entire portfolio.

3. Treasury Inflation-Protected Securities (TIPS)

TIPS are government bonds specifically designed to protect your investment against inflation. Unlike traditional bonds, the principal of a TIPS bond adjusts with the Consumer Price Index (CPI). When inflation increases, so does your bond’s value and interest payments.

They’re a low-risk way to preserve your purchasing power, especially for conservative investors or those nearing retirement. TIPS don’t offer massive returns, but they offer reliable protection in environments where cash and traditional bonds are losing ground.

4. Gold and Precious Metals

Gold has long been considered a safe haven in times of inflation and uncertainty. Unlike paper currency, which loses value as inflation rises, gold tends to retain (or even increase) its worth. It’s seen as a tangible store of value, one that’s not tied to any government or central bank.

While gold doesn’t produce income like stocks or bonds, it offers peace of mind during economic volatility. Silver and platinum also benefit from inflation, though their prices are more closely tied to industrial demand. Investing in physical metals, ETFs, or mining stocks can all give you exposure to this timeless inflation hedge.

5. Stocks in Certain Sectors

While some stocks struggle during inflation, others tend to outperform, especially those in sectors that can pass rising costs on to consumers. These include:

Energy (oil and gas companies benefit directly from rising fuel prices)

Consumer staples (brands that sell everyday necessities with pricing power)

Materials (producers of industrial goods and raw materials)

Utilities (companies that can adjust rates to cover increased expenses)

These companies are often well-positioned to maintain profit margins even when inflation climbs, making their stocks more resilient than others.

assets, investing
Image source: Unsplash

6. Short-Term Floating Rate Bonds

Unlike fixed-rate bonds, floating-rate bonds adjust their interest payouts based on current interest rates, which typically rise alongside inflation. This makes them a better choice during inflationary periods when traditional bonds lose value.

Short-term floating rate funds offer investors a way to stay invested in the bond market without locking into low-yield, long-duration risks. They’re a more agile solution that keeps pace with changing economic conditions.

7. Cryptocurrencies (With Caution)

Some investors view cryptocurrencies like Bitcoin as a hedge against inflation, citing their decentralized nature and limited supply. The idea is that, like gold, digital currencies are not subject to manipulation by governments or central banks.

However, crypto’s track record during real-world inflation has been mixed. While it may offer upside potential, it’s also extremely volatile and speculative. For those with a higher risk tolerance, it can be part of an inflation-conscious portfolio, but it shouldn’t be the foundation.

While some assets shine when inflation rises, others suffer (often silently). These investments may seem safe, but they lose real value as the cost of living increases. Here are three of the most vulnerable.

1. Long-Term Fixed-Rate Bonds

Long-term government or corporate bonds lock in interest rates for decades, sometimes 20 or 30 years. When inflation rises, these fixed returns lose their appeal. The bond’s real yield (what you earn after adjusting for inflation) drops, and the market value of the bond often plummets.

If you need to sell before maturity, you could take a serious hit. Even if you hold the bond, the income you earn may no longer be enough to keep pace with rising costs.

2. Cash Savings

It’s essential to have emergency savings, but in times of high inflation, cash sitting in a savings account loses purchasing power every day. Even high-yield savings accounts rarely outpace inflation.

A $10,000 emergency fund might still look like $10,000 next year—but if inflation is 6%, it’s only worth $9,400 in real terms. Over time, this erosion adds up. For short-term needs, cash is necessary. But for long-term wealth building, inflation quietly destroys its value.

3. Fixed Annuities Without Cost-of-Living Adjustments

Fixed annuities may provide guaranteed income, but many do not adjust for inflation. That means the monthly payout that seems sufficient today could feel painfully small 10 or 20 years from now.

If you’re relying on an annuity to cover long-term retirement needs, make sure it includes a cost-of-living adjustment, or consider balancing it with other assets that keep pace with inflation.

Inflation Is a Stress Test for Your Portfolio

Inflation exposes the weak points in your financial plan. If you’re relying on fixed returns, cash, or outdated strategies, you may be unknowingly eroding your own wealth. But if you shift toward assets that grow with inflation (or at least hold their value), you give yourself a real shot at staying ahead of rising costs.

The key isn’t to panic. It’s to diversify. The right mix of real assets, inflation-resistant securities, and active income strategies can protect you in a world where prices never stop climbing.

What’s your go-to inflation hedge? Have you made any changes to your portfolio lately in response to rising prices?

Read More:

Crypto as a Retirement Plan: How to Use Digital Assets for Long-Term Savings

How to Beat Inflation – 10 Actionable Tips

Riley Schnepf

Riley Schnepf is an Arizona native with over nine years of writing experience. From personal finance to travel to digital marketing to pop culture, she’s written about everything under the sun. When she’s not writing, she’s spending her time outside, reading, or cuddling with her two corgis.



Source link

Tags: assetsinflationtankThrive
ShareTweetShare
Previous Post

oil prices fall back after short-lived surge in early trading

Next Post

Asian stock markets: Asian shares slip, oil rises as investors weigh Iran scenarios

Related Posts

edit post
How Much Vacation Time Are American Workers Actually Taking?

How Much Vacation Time Are American Workers Actually Taking?

by TheAdviserMagazine
October 31, 2025
0

Mariia Korneeva / Shutterstock.comThe FlexJobs Work and PTO Pressure Report found that nearly one-quarter (23%) of U.S. workers didn’t take...

edit post
How to protect your bank account

How to protect your bank account

by TheAdviserMagazine
October 31, 2025
0

Banking these days is something that increasingly leaves out the bank. “People don’t go to an ATM or into a...

edit post
Stock news for investors: RBI earnings rise as Tim Hortons and international growth boost results

Stock news for investors: RBI earnings rise as Tim Hortons and international growth boost results

by TheAdviserMagazine
October 31, 2025
0

Under the transaction, Northern Superior’s shareholders will receive 0.0991 of an Iamgold share and 19 cents in cash for each...

edit post
Retire at 50 with Just .5M? The Brutal Truth + 4 Dead-Simple Things to Make It Happen Before You’re 60

Retire at 50 with Just $2.5M? The Brutal Truth + 4 Dead-Simple Things to Make It Happen Before You’re 60

by TheAdviserMagazine
October 30, 2025
0

Image source: Shutterstock. Happy romantic couple contemplating middle age retirement.For many, the idea of retiring at age 50 sounds amazing....

edit post
8 Medigap “Gaps” You Only Notice After a Hospital Transfer

8 Medigap “Gaps” You Only Notice After a Hospital Transfer

by TheAdviserMagazine
October 30, 2025
0

Image Source: Shutterstock Most retirees assume that having Medigap coverage means they’re fully protected from surprise medical bills. Unfortunately, that’s...

edit post
6 Facts You Should Know About the Thrift Savings Plan If You Are a Government Employee

6 Facts You Should Know About the Thrift Savings Plan If You Are a Government Employee

by TheAdviserMagazine
October 30, 2025
0

Image Source: Shutterstock If you’re a federal employee or member of the military, the Thrift Savings Plan (TSP) could be...

Next Post
edit post
Asian stock markets: Asian shares slip, oil rises as investors weigh Iran scenarios

Asian stock markets: Asian shares slip, oil rises as investors weigh Iran scenarios

edit post
Wolfspeed plans US bankruptcy filing in deal reached with creditors

Wolfspeed plans US bankruptcy filing in deal reached with creditors

  • Trending
  • Comments
  • Latest
edit post
77-year-old popular furniture retailer closes store locations

77-year-old popular furniture retailer closes store locations

October 18, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Another Violent Outburst – Democrats Inciting Civil Unrest

Another Violent Outburst – Democrats Inciting Civil Unrest

October 24, 2025
edit post
Probate vs. Non-Probate Assets: What’s the Difference?

Probate vs. Non-Probate Assets: What’s the Difference?

October 17, 2025
edit post
California Attorney Pleads Guilty For Role In 2M Ponzi Scheme

California Attorney Pleads Guilty For Role In $912M Ponzi Scheme

October 15, 2025
edit post
This China-Based Trading App Operator Sees Explosive Profit Growth. More Is Expected.

This China-Based Trading App Operator Sees Explosive Profit Growth. More Is Expected.

0
edit post
How to Make Your Crypto Hidden From Creditors |

How to Make Your Crypto Hidden From Creditors |

0
edit post
Exxon Mobil in talks to power data centers with natural gas and carbon capture

Exxon Mobil in talks to power data centers with natural gas and carbon capture

0
edit post
These 14 smallcap stocks soared up to 70% in 30 Days — Do you own any? – Smallcaps Steal Spotlight

These 14 smallcap stocks soared up to 70% in 30 Days — Do you own any? – Smallcaps Steal Spotlight

0
edit post
Recipes with Rothbard: What Chocolate Cake Can Teach About Economics

Recipes with Rothbard: What Chocolate Cake Can Teach About Economics

0
edit post
Whales withdraw 2,000 Bitcoin worth 0M from Binance in 2 hours

Whales withdraw 2,000 Bitcoin worth $220M from Binance in 2 hours

0
edit post
This China-Based Trading App Operator Sees Explosive Profit Growth. More Is Expected.

This China-Based Trading App Operator Sees Explosive Profit Growth. More Is Expected.

October 31, 2025
edit post
Exxon Mobil in talks to power data centers with natural gas and carbon capture

Exxon Mobil in talks to power data centers with natural gas and carbon capture

October 31, 2025
edit post
Recipes with Rothbard: What Chocolate Cake Can Teach About Economics

Recipes with Rothbard: What Chocolate Cake Can Teach About Economics

October 31, 2025
edit post
Whales withdraw 2,000 Bitcoin worth 0M from Binance in 2 hours

Whales withdraw 2,000 Bitcoin worth $220M from Binance in 2 hours

October 31, 2025
edit post
AI empowers criminals to launch ‘customized attacks at scale’—but could also help firms fortify their defenses, say tech industry leaders

AI empowers criminals to launch ‘customized attacks at scale’—but could also help firms fortify their defenses, say tech industry leaders

October 31, 2025
edit post
How Much Vacation Time Are American Workers Actually Taking?

How Much Vacation Time Are American Workers Actually Taking?

October 31, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • This China-Based Trading App Operator Sees Explosive Profit Growth. More Is Expected.
  • Exxon Mobil in talks to power data centers with natural gas and carbon capture
  • Recipes with Rothbard: What Chocolate Cake Can Teach About Economics
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.