How to protect yourself from inflation with the right investments

2023-06-11 08:54:38

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Gold, cryptocurrency, real estate – what is best in times of high inflation rates?

Frankfurt A new world with permanently higher interest rates and inflation that is more likely to be too high than too low: According to the widespread opinion of experts, this is what awaits investors in the coming years.

Which systems can prove themselves in this environment? An overview of the sectors of the capital market.

Regular bonds: at risk

Interest-bearing securities are considered vulnerable to inflation. Because the repayment is made at the nominal value, there is a loss in value over the term. With inflation of only two percent, which is what most of the world’s central banks are aiming for, after ten years there is only around EUR 82 left of EUR 100 in terms of initial purchasing power. With four percent inflation, the repayment value of the interest security melts down to around two-thirds in the same period.

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Further