Investing in Inflation

The key to investing in an inflationary economy is diversification.

Diversification is the means by which wins can cover losses during inflationary times. Mixing different assets and investments limits your exposure to risk. It also provides a hedge against volatility. Solomon wrote about it in Ecclesiastes chapter 11: “Give a portion to seven, or even to eight, for you know not what disaster may happen on earth.” (Ecclesiastes 11:2) “In the morning sow your seed, and at evening withhold not your hand, for you do not know which will prosper, this or that, or whether both alike will be good.”  (Ecclesiastes 11:6)

Plan to invest some time to research and monitor your portfolio. When you diversify, short-term gains may be limited, but long-term gains can be higher. Seek ways to limit high fees and commissions by looking for value that you can buy and hold. Stocks can actually be a good investment during inflation. Look for well-managed companies with a healthy cash flow. Some people hedge inflation with investments in rental property. This requires knowledge and careful timing to lock in a low-rate mortgage where property values are expected to rise. Remember, investing is not gambling or guessing, but you can make money by investing wisely during an inflationary period. Educate yourself, seek wise counsel, and discuss things with your spouse. Pray together and ask God for wisdom. Then, make necessary adjustments so you’re prepared for what may lie ahead. 

And if you’re not investing because you’re overloaded you with credit card debt, I recommend Christian Credit Counselors. They’ll create a debt management plan specifically for you. For more information call the Crown Helpline: 800-722-1976 or visit online at crown.org/ccc.