How to invest in the high inflation age ?

How to invest in the high inflation age ? In the high inflation age , if you do not invest, your money is shrinking, if you do not invest properly, you may loss your investment. So it is very important to know "How to invest in the high inflation age".Source: Investment Money Making Forum

As oil prices and the livelihood materials prices are rising, making off sound anonymous track of inflation, has become all concerned by the topic, in which the entire handling some can resist inflation, investment tools for you reference:

1. Against inflation bonds (Treasury Inflation Protection Securities, TIPS): issued when the coupon rate is fixed, but the general treasury different, the anti-inflation bonds, the amount of degrees of each half of the year according to inflation rate (usually CPI) into the adjustment. If the inflation rate to rise, due to the amount of degrees risen, investors have access to the coupon amount will be increased, and finally, when these bonds mature, investors will be issued under the bond after a period of adjustment of the inflation rate funds, thereby offsetting inflation purchasing power of the bond is not adversely affected. But anti-inflation bonds also has shortcomings, first, the anti-inflation relatively low coupon bonds, the United States as an example, the current relative to the general treasury bonds, the gap between the two is about 2.5%, so unless the average expected future annual inflation rate of more than 2.5%, or anti-inflation bond returns will be lagging the overall general government bonds. Second, the fight against inflation bonds speaking, the most unfavorable environment of rising interest rates and deflation, the anti-inflation bond prices will decline, and the amount of their degree of adjustment is also unfavorable, but generally speaking, this situation and uncommon. In addition, apart from anti-inflation bonds, investors can also use the general anti-inflation index bonds, bond funds to develop the investment.

2. Resource Class Shares: Year in the generation of rising inflation, and substantial assets, financial assets than usually bring higher rewards, but also more effective store of value. Therefore, for the industry to invest in mining, precious metals and energy resources, types of shares will increase profit, the outlook is relatively good. Investors may also choose to cover a wider range of funds into the global resources within the portfolio.

3. Real Estate Investment Trust (Real Estate Investment Trusts, REITs): is a focus on capital investment, investment in real estate projects on the product. The operation of REITs as the general unit trusts, REITs are not the same as a series of investment projects have long-term stability of high-quality rental real estate returns, such as the Plaza Hotel, shopping centers or office buildings. The rental income less operating costs is to invest in the future people can get a cash dividend, and its value-added real estate investors may be regarded as capital gains. Because real estate is also a part of substantial assets, rise in inflation, rental income and value added their own metropolitan price rise, it can offset the adverse effect of inflation. REITs is that it, like a synthesis of bonds and stocks, on the one hand with the stability of bond-type dividend income, on the other hand can also enjoy the benefits of fund prices. However, the risk of investment in REITs is the performance of funds managed by the impact of large real estate companies.

4. Australian: (A $) of gold over the past anti-inflation tool, but the gold class shares do not like the gold itself has a hedge against inflation effects, and is not suitable for general solid-type investors, as the anti-inflation investment vehicles, according to statistics, in the past Australian and two years related to gold futures as high as 91%, investors can be Australian (AUD) assets as alternative investment vehicles gold, due to relatively high Australian dollar assets, dividend and low volatility characteristics, is the investment tool against inflation Another choice.