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Given the current inflation rate investors are looking for ways to beat inflation, the traditional 60/40 stock-bond portfolio may no longer provide the same level of growth or yield as it did in scenarios with lower inflation. So there is a need to think outside the box and find new investment ideas to help deal with inflation and grow the capital.Real Estate And Infrastructure To Beat Inflation
Real Estate Investment, via REITs, DST’s and Reg D offerings:
Real estate often acts as a natural hedge against inflation. Investing in incoming product, which offer income through dividends from property-related income, could see benefits from rising rents and property values. Real estate investing through REITs, DSTs, and Reg D offerings is like owning a vineyard with a built-in pricing advantage. As inflation rises, the cost of wine and grapes naturally increases, boosting the vineyard’s revenue without requiring more land or resources. Similarly, real estate investments generate income that often rises with inflation, providing a built-in hedge and steady returns.
NEW YORK, NEW YORK – JUNE 12: People shop at Lincoln Market on June 12, 2023 in the Prospect … [+] Lefferts Gardens neighborhood in the Brooklyn borough of New York City. The Labor Department is expected to release the Consumer Price Index report for the month of May that shows inflation slowing down across all categories, with food and energy costs remaining above the Federal Reserve’s target as they kick off a two-day meeting. The meeting will culminate with a press conference by U.S. Federal Reserve Bank Chairman Jerome Powell making an announcement on interest rates. (Photo by Michael M. Santiago/Getty Images)Getty Images
Infrastructure: Investments in infrastructure, particularly in areas like renewable energy or transportation, can offer inflation-linked returns due to long-term contracts that adjust for inflation. Investing in infrastructure is like planting a fruit tree with a guaranteed buyer for your harvest. Over time, as inflation increases, the price of fruit rises, and your contract ensures that your investment inflate along with it.
Private Equity and Venture Capital:
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