Shortly after publishing it, the message written by the tycoon assuring, among other things, that he kept his Dogecoin, caused the value of the cryptocurrency to rise. But, in addition to mentioning that topic, Musk left a message regarding the physical assetsthe type of investment that is usually safer in times of high inflation.
In these moments, the inflation in the US it’s starting to get cold although still high, the January consumer price index (CPI) data arriving at the 6.4% yoy This means that Musk’s advice to own physical things is still as credible as he was a year ago, when he posted the aforementioned tweet.
Investments to make in periods of high inflation
Real estate
Musk referred to owning a home. The real estate they are one of the investments that historically performed well during periods of high inflation. Regardless of the fluctuation of values, These assets have the ability to provide consistent cash flow in all economic environments.
On the other hand, buying a property is not a feasible option for many people. Investors in that situation may choose to buy fractional real estate sharesthat is, they can buy rental property stock or invest in multi-family and commercial real estate.
Art
He art It was, and still is, a method of accumulating wealth. In fact, for the past 25 years it has outperformed the S&P 500. This type of product appreciates at an average rate of 23.2% in years in which the inflation is of at least 3% per year.
This type of investment used to be an option only reserved for people with very high resources. However, retail investors now have options to buy shares of valuable works either invest in art funds.
good quality products
For example, the calls “fine wines” or investment-grade or collector’s wines that have significant trading volume. There is an index in which you can invest and what is supported by wine pricesit is known as the “Live-ex” or London International Vintners Exchange.
It is based in London and was founded in 1999, it is a wine price index based on transactions to measure the evolution of the price of the so-called “fine wine” or investment-grade or collector’s wines that have significant trading volume.
He Liv-ex 1,000 had one of his strongest years in 2022when the inflation skyrocketed worldwide. So far this year this index down 0.8% but it rose 8.4% in the last twelve months. For all this, it is part of the investment menu recommended by Musk.
Retail investors gained access to this market when buying securitized shares of wine collections and even buying and selling individual bottles through investment platforms.
Source: Ambito
