Inflation can make us all feel poor. As groceries climbed, gas prices soared and daily necessities absorbed a bigger bite from our paychecks, so it was natural to wonder: What can I benefit from it?

Although most people are concerned about inflation, savvy investors learn that not all assets suffer losses during price increases. In fact, some investments tend to perform better when inflation is high. These inflation-resistant assets either add value, generate reliable income, or protect your purchasing power in a meaningful way.

Meanwhile, some assets quietly lose the ground, destroying your wealth as inflation disappears with its true value. Let’s explore 7 assets that usually flourish during inflation, and three may quietly tank when not watching.

Assets that thrived during inflation (what isn’t)

1. real estate

Real estate is one of the most reliable hedges against inflation. Why? Because property value and rental income usually rise with the cost of living. As prices rise, the value of land and homes increases, especially in ideal areas.

In addition, landlords can match inflation over time, providing landlords with the opportunity to maintain (or increase) cash flow. Meanwhile, if you have a fixed-rate mortgage, your monthly payment remains the same even if everything else becomes more expensive. This means your housing costs are shrinking Relative inflation.

Both commercial real estate and residential rents can stay in good shape, especially when housing demand is strong.

2. commodity

When inflation rises, the price of raw materials usually rises. That’s why commodities such as oil, gas, gold, wheat, copper and even livestock can be strong inflation hedges. They reflect the rise in production and consumption costs across the economy.

Commodity-centric ETFs and mutual funds provide a way to gain exposure without purchasing physical goods. Especially during high inflation, especially when global supply chains are tight, energy and agriculture tend to soar. But commodities can be volatile, so it’s better to use them as part of a diversification strategy rather than the entire portfolio.

3. Fiscal inflation-protected securities (tips)

Tips are government bonds designed specifically to protect your investment from inflation. Unlike traditional bonds, it is prompted that the subject of the bond is adjusted through the Consumer Price Index (CPI). As inflation increases, so does the value and interest of your bonds.

They are low-risk ways to maintain your purchasing power, especially for conservative investors or those who are about to retire. Tips don’t provide a lot of rewards, but they provide Reliable protection In an environment where cash and traditional bonds lose their foundation.

4. Gold and precious metals

Gold has long been considered a safe haven during periods of inflation and uncertainty. Unlike paper money that loses value as inflation rises, gold tends to retain (or even increase) its value. It is regarded as a tangible store of value and has nothing to do with any government or central bank.

While gold does not generate income like stocks or bonds, it can be assured during economic volatility. Silver and platinum also benefit from inflation, although their prices are closely related to industrial demand. Investing in physical metals, ETFs or mining stocks can expose you to this timeless inflation hedge.

5. Stocks in certain sectors

While some stocks struggle during inflation, others tend to outperform the market, especially those industries that can transfer growing costs to consumers. These include:

• vitality (Oil and gas companies benefit directly from rising fuel prices)

• Consumer staple food (Brands that sell daily necessities with pricing power)

• Material (Producer of industrial supplies and raw materials)

• Utilities (The rate can be adjusted to cover the company that increases its expenses)

Even if inflation climbs, these companies usually have a good position to maintain profit margins, which makes their stocks more resilient than others.

6. Short-term floating rate bonds

Unlike fixed-rate bonds, floating-rate bonds adjust their interest payments based on current interest rates, which usually rises along with inflation. When traditional bonds lose their value, this makes them a better choice during inflation.

Short-term floating interest rate funds provide investors with a way to invest in the bond market without locking in low returns and long-term risks. They are a more agile solution to keep up with changing economic conditions.

7. Cryptocurrency (caution)

Some investors believe that cryptocurrencies like Bitcoin are hedges against inflation, citing their diversified nature and limited supply. The idea is that, like gold, digital currencies are not manipulated by governments or central banks.

However, cryptocurrencies’ track record during real-world inflation has become mixed. While it may have upward potential, it is also extremely turbulent and speculative. For those with higher risk tolerance, it can be part of an inflation-conscious portfolio, but it should not be the basis.

Now, for assets that tend to tank during inflation

Although some assets shine when inflation rises, others often suffer (usually silently). These investments seem to be safe, but as the cost of living increases, they lose their true value. These are the three most vulnerable.

1. Long-term fixed interest rate bonds

Long-term government or corporate bonds lock interest rates for decades, sometimes 20 or 30 years. When inflation rises, these fixed returns will lose appeal. The real rate of return on a bond (the rate of return you earn after adjusting for inflation) drops, and the market value of the bond often drops.

If you need to sell before you mature, it can be a serious blow. Even if you hold bonds, the income you earn may not be enough to keep costs rising.

2. Save cash

It is crucial to save on emergencies, but during times of high inflation, cash in savings accounts loses purchasing power every day. Even high-yield savings accounts rarely outweigh inflation.

$10,000 emergency fund may still be possible look Just like $10,000 next year, but if inflation is 6%, it’s actually only worth $9,400. As time goes by, this erosion adds up. For short-term demand, cash is required. However, for long-term construction of wealth, inflation will quietly destroy its value.

3. Fixed annuity without cost of living adjustment

A fixed annuity may provide guaranteed income, but many people are not suitable for inflation. This means that today seems enough monthly payments may feel painful for 10 to 20 years from now.

If you are relying on annuity to meet your long-term retirement needs, make sure it includes adjustments to the cost of living, or consider balancing it with other assets to keep inflation in sync.

Inflation is a stress test for your portfolio

Inflation reveals weaknesses in your financial plan. If you rely on fixed returns, cash, or outdated strategies, you may unknowingly undermine your wealth. But if you turn to an asset that inflation (or at least keeps its value) growing, you will bring yourself a real placement to keep costs going.

The key is not panic. Be diversified. The right combination of real assets, anti-inflation securities and active income strategies can protect you in a world where prices never stop climbing.

What is your inflation hedge? Have you made any changes to your portfolio to your price increase recently?

Read more:

Encryption as a retirement plan: How to use digital assets for long-term savings

How to beat inflation – 10 actionable tips