Investing in times of rescission or hyperinflation is not very different from the regular investing you know. It’s important to know that inflation is your enemy here. If you know inflation averages about 7-9% right now, it is plausible that we can get up to 13%.
So, aim around 13% on average over a year and you will be fine.
In this article you’ll find some strategies or ways of investing that will not only protect you and your money against hyperinflation or recession, but also yield you some returns.
Index stocks and index risk management
Index stocks like S&P 500 yield you around 11% a year on average. Index stocks are great ways to keep your risks low with medium return. 11% APY over a year is not a lot but it is quite low-risk. The average of 11% has been taken from the last 50 years throughout all the crashes and recessions we had experienced.
Index investing is for you if you plan to invest mid to long term with medium returns and minimum risks.
Day trading or swing trading
This has many names, Swing trading, Day trading or Scalping. But basically unlike long-term investing this is investing within a few days or weeks, usually dealing with a big amount of cash at once. This is a very high-risk strategy. Investing like this also requires a lot of education and knowledge on the investor’s side. Knowledge can be gained through many different outlets on the internet at popular websites like Investingstrategy.co.uk or video lectures on platforms like youtube. With this high-risk investing also comes a high reward.
Meaning, the riskier you go, the higher your reward. You make a month’s wage within a few days. If this does sound attractive to you though, make sure you educate yourself and keep on improving!
REIT investing
R.E.I.T investing is a fancy acronym for the name “Real Estate Investment Trusts” which means you are investing into a trust/company which does real estate projects like apartment buildings or flats. REITs are also known to invest money themselves, thus further increasing the chance of a profit for you. REIT investing is not for everyone though, since the returns on a short to mid term basis can be minimal, but long-term, it can deliver high returns. A little fact for you: the real estate market is up 12000% (gross) in 50 years. Keep in mind this is without inflation taken in account. So, also the cost of living went up by 600%.