A mix of traditional investment strategies should help cope with inflation

A mix of traditional investment strategies should help cope with inflation

Markets have been volatile so far this year. Covid is no longer discussed in high drama TV news debates. Rather it is US monetary policy tightening and possible US recession risks and inflation that have taken centre stage. I grew up in a household where annual budget planning is religiously followed, and lately, there has been an echo of that with the wife starting to complain about rising prices. In simple terms, Inflation decreases the purchasing power of the money one holds. There are several factors which cause inflation, supply chain disruption, demand, fiscal policy, high manufacturing costs etc. all contribute to inflation. Current US inflation is high, and the truth is that there is nothing a consumer can do to control Inflation as it is beyond their control. Inflation is also eroding our investment value and, hence, the key question among investors is what one should do to protect their investment value. And where should one invest to hedge against inflation. Passive investors with the vision to create wealth over the long term should not time the market. They should also not worry too much about inflation either. One should systematically invest and continue to do so in good