Invest Your Money

Investing under High Inflation

by Joseph Sheeley of The Small Investor

High inflation is challenging.  Every day the prices for the goods and services you need increase, leaving you scrambling to pay for everything.  You go to fill up your car and it costs $40 more.  You go to the supermarket and what seems like a modest haul costs $100 or more.  You go to a restaurant and need to whip out the credit card because the cash in your pocket isn’t going to cover it.

Luckily, investing in high inflation times really isn’t all that difficult.  In fact, you really need to invest when inflation is high.  Cash will wither and disappear with inflation.  Things like stocks and real estate will grow in price with inflation.  With high inflation you absolutely need to be fully invested unless you need the money soon.  Otherwise, you’ll be losing purchasing power with each passing month.  It’s like there is a 10% yearly tax on any money you have sitting around, so leaving $10,000 in cash will cost you $1000 per year.