Best Alternative Investments During Times of High Inflation

Inflation comes with many obvious pain points. The cost of everything goes up, your dollar is worth less, and it feels like there’s no end in sight. You are forced to make adjustments in your daily life, as well as in your long-term planning.

When it comes to investing, how can you best mitigate the short-term effects of inflation and maintain your long-term projections? These three alternative investments may not be panaceas, but they are proven, contrarian moves that can do a good job of keeping your long-term goals realistic.

Immovable

There is a limited amount of land in the world, and it will continue to be in demand. Inflation or not, savvy investors keep real estate in their heads and in their portfolios. Depending on market conditions, you adapt as you see fit. Periods of high inflation can be the perfect time to switch from real estate as an inclusive diversifier to real estate heavy.

During the last recession, which spanned around December 2007 through June 2009, the average home in Ann Arbor, Michigan sold for around $211,000, according to mlive.com. Ann Arbor is one of the most diverse, affluent, and best places to live in America, as Niche explains. In June 2022, the average selling price of a home in Ann Arbor was $439,000.

Buying in times of recession and during inflation can be a profitable business. It means taking a (relatively safe) bet with a lot of money at a time when money is scarce. However, even if you’re not backed by billionaires or have a spare down payment, you can still find ways to make your real estate dreams come true. Consider the following:

Homes arrived: Arrived Homes is an alternative investment platform that makes it easy for individuals to invest in real estate by buying shares of rental properties. Investors on the platform earn passive income through rental income while waiting for the properties they invest in to appreciate in value over time.

Visit the houses that have arrived

Fund raising : Fundrise is a real estate investment platform designed to provide retail investors with access to institutional-grade real estate assets with flexible minimum investments. The platform’s real estate funds are available to accredited and non-accredited investors.

Visit the fundraiser

Real Estate Tycoon: This unique online platform allows investors to manage the entire commercial real estate investment process directly from their RealtyMogul dashboard. With rigorously vetted property listings, expertly managed REITs, and a commitment to providing top-notch service and support to its members, RealtyMogul makes commercial real estate accessible to everyday investors.

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Wine and spirits

Good wine has returned 10.6% annually for the past 30 years, outperforming the global equity market over the same period, according to Vinoest. An incredibly niche market with its own lingo and wealthy investors competing for rare collections can seem daunting. However, you don’t have to be an expert to get started or even dive into the depths. Consider a partner or platform that makes choices for you. Benzinga’s favorite example is:

Wine: Vint is an innovative fintech platform that introduces a new way for wine producers of all sizes to manage their cash flow and grow their business with non-dilutive capital. The first SEC-qualified and fully transparent platform for investing in wine and spirits collection, it also launched the first-of-its-kind opportunity to invest in wine futures. Vint’s first “Vint En Primeur” offering will be 50 cases of Joy Fantastic Syrah 2021 from Santa Barbara. These wines are currently aged in barrels and will be bottled and marketed in 2023.

Another advantage is that this investment is less complicated than crypto, credit derivatives or NFTs. The Vint team curates collections of investment-grade blue chips and promising assets, and when the time is right to maximize returns, they work with their merchant partners, auction houses and private buyers to sell assets at the within each collection and distribute the product. on a pro rata basis. .

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Art

Art as an investment has been widely distributed, published and displayed by the wealthy for a long time. Owning artwork is a status symbol, sure, but it’s also a way for savvy investors to mitigate risk. Artsy.net explained: “While an exact correlation between the art market and inflation is difficult to analyze, as art is a sentiment-based asset tied to excess wealth, history suggests that the price of art sold at auction tends to rise during periods of high inflation.

Similar to fine wines, the fine arts are a culture in their own right. The landscape can be tricky for beginners to navigate and there are millions of rooms to navigate. How do you know which coins to invest in and buy? There are platforms that basically operate like a co-owned art gallery, curating their own collections that you have the option to invest in.

Masterpieces: Masterworks is an alternative investment platform that allows investors to own shares of famous works of art. Artwork is kept in a secure, air-conditioned environment while Masterworks seeks a collector or independent buyer to sell for profit. When a coin is sold, investors receive a share of the profits proportional to their initial investment. With a historic return of nearly 16%, you may be part of an opportunity to outperform traditional markets.

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