How to Invest During InflationMoney Top of the List
We’re constantly bombarded with news of inflation… and of course, we feel the effects every time we reach in our pockets. Sure that kind of makes you want to hide all your money under a floorboard but in truth, there’s no better time to start thinking about getting a plan in place to assure your financial future! Jake Guttman, the founder of Roosevelt Financial, gave us some tips on learning how to invest during inflation.
First —think about long-term
The essence of good investing is ‘buy low, sell high” —and a downturn in the stock market means chances to ‘buy low’ galore. Jake says it’s all about learning to look at economic cycles in a way where you recognize opportunities — for example, if you saw a TV for 25% off, you’d pounce on it… a dip on Wall Street could be a chance to get a 25% discount on buying into the company that MAKES TV’s. (Do that, and you’ll be able to buy a lot more TV’s in the future.)
Investing is the best way to stay ahead of inflation
Jake is a guy who’s been around numbers for a long time and he says while data may be confusing, it doesn’t lie. One essential fact to remember — if you’d put $1,000 in the S&P in 1970, as of March 2020 it would be worth over $121,000. Inflation over that time has made things cost about 7 times as much… 121 vs. 7? Decision made.
Even if you can just invest a little, it’s worth it to “build a habit”
Investing is a scary thing to begin — so start with nibbles instead of big bites. During inflation, your natural sense of caution will help you make careful, thoughtfully-considered outlays. Everybody has to start somewhere… and now’s the perfect time to pick a stock that you feel has a good future, and dip your toe in. Once you get your footing and feel confident, you can spread your wings and go bolder.
That’s a look at investing during inflation.