You are viewing a single comment's thread from:
RE: Five Talent Series: Talent 2c Let Your Savings Grow
Interesting post, educational and easy to read. But, can you help me with some recommendations to apply in a hyper inflation economy?
Interesting post, educational and easy to read. But, can you help me with some recommendations to apply in a hyper inflation economy?
Hey nowonline, I can let you know how I approach the current climate. Eventually there will be a currency crisis in the West but it is difficult to tell when this may happen. Diversification of currencies and businesses is Key to minimizing exposure to this. So the example would be I live in costa rica but have a business in EUR and USD and also have alternative crypto currencies. The very richest people have a completely diversified geographic portfolio that prevents a total loss of savings purchasing power. Secondly , there are assets that perform well in a inflationary environment such as gold stock and precious metals but do not go to heavily into these as I have seen to many people invest heavily into this only waiting for the collapse to come and losing a good portion of their asset value. It is a tricky question and would really need a entire blog to flesh out some of the permutations so thank you for the question.
Thanks for your attention. Yes, I know is not an easy question. I only wanted to know what would you do if you lived in a country like mine. It let me check if I can do something more, living in this situation is not easy. I know there's a way to surf all of this, it has to be, and it occurs to me to ask you while I was reading your post.
Thank you very much for your words.
You will want to look at your total situation which includes your income, expenses and investments. The best inflation hedge is working in a business that is in an industry that is not directly correlated the risk you are trying to mitigate. Example would be if you think the banks are over leveraged work for a bank that has low leverage. without knowing more about your situation it can be difficult to make any accurate suggestions.