Inflation remains a significant concern for investors, continuously eroding the purchasing power of the dollar and impacting the real value of investments. Despite recent efforts by the Federal Reserve to curb inflation to manageable levels, the financial landscape remains unpredictable, making it critical for investors to adopt strategies that protect their portfolios from the threat of inflation. There are a lot of ways to protect your wealth from inflation, and some are better than others, so we’ll explore practical and effective strategies for hedging against any possible erosion of your purchasing power to ensure your investments and financial future remain well protected in the years to come.
Understanding Inflation and Its Effects
Understanding inflation and its effects on investments is crucial for every investor aiming to maintain the value of their portfolio over time. Inflation not only diminishes the purchasing power of money but also impacts the nominal returns of investments, making it harder to achieve real growth. This phenomenon, driven by various factors such as supply and demand imbalances, monetary policy decisions, and global economic events, can lead to a sustained upward trend in the price of goods and services. For investors, this means that the nominal value of their returns may not keep pace with the rising cost of living, effectively reducing the real value of their wealth. Hedging against inflation, therefore, involves identifying and investing in assets that are likely to appreciate or generate income at a rate that exceeds inflation. By understanding the multifaceted impacts of inflation and adopting strategies to mitigate its effects, investors can better protect their purchasing power and investment value over the long term.
Strategic Approaches to Combat Inflation
- Equities and Companies with Pricing Power: Investing in stocks, especially those of companies with the ability to adjust prices without losing market share, can offer effective protection against inflation. Such companies often demonstrate resilience during inflationary periods, with their earnings and stock prices potentially growing at or above the rate of inflation.
- Diversification and International Exposure: Diversifying your investment portfolio across various asset classes and geographic locations can offer protection against domestic inflation. International stocks and bonds may perform differently in response to inflation, providing a buffer against local economic fluctuations.
Assets to Be Wary Of
Investors navigating through inflationary periods must be particularly cautious with long-dated bonds and fixed-rate Certificates of Deposit (CDs). These instruments, designed to lock in interest rates for extended periods, become less appealing as inflation rises, since the fixed returns they offer lose purchasing power over time. Long-dated bonds are especially susceptible to price declines when inflation expectations increase, as investors demand higher yields for the risk of holding them. This is due to the inverse relationship between bond prices and yields. Similarly, fixed-rate CDs might offer stability and security, but in high inflation environments, the real return – after adjusting for inflation – can be negative, eroding the value of invested capital. It’s crucial for investors to assess the duration and yield of these assets in relation to their inflation outlook and investment horizon.
Implementing Inflation-Protection Strategies
Crafting a portfolio that stands resilient in the face of inflation entails a multifaceted approach, extending beyond the mere selection of assets known for their inflation-hedging characteristics. It requires a deep understanding of one’s financial goals, risk tolerance, and the intricate dynamics between different asset classes under inflationary pressure. Regular portfolio reviews are essential, as they allow investors to adjust their allocations in anticipation of or in response to inflationary trends, ensuring that their investment strategy remains aligned with their objectives. This strategic vigilance and adaptability are key to safeguarding one’s portfolio from the eroding impact of inflation.
Protecting Your Portfolio
Inflation can pose a significant threat to investment portfolios, but by implementing thoughtful and diversified strategies, investors can protect their assets and ensure long-term financial stability. Remember, the key to successful inflation hedging lies in diversification, regular portfolio reviews, and aligning strategies with your financial goals and risk tolerance.
A proper plan can be one of your best tools to prepare, implement, and monitor the effects and outcomes of having “Wealth on Purpose,” even after the inflation dust settles.
Pick up your copy of “Wealth on Purpose” by Bryan Ballentine for more information on how to grow, protect, and keep real wealth.
Have a great weekend!
Sources: Located at the bottom of the article
Golf Tip of the Week
Top Trainer: Golfers Experiencing Lower-Back Pain Need This Stretch
Many golfers struggle with lower-back pain, but you don’t have to suffer through it round after round without some relief. Jennifer Fleischer, a Golf Digest Certified Fitness Trainer, says that the fix for nagging pain could be as simple as doing this one dynamic stretch.
Get into an athletic stance with your feet slightly wider than shoulder width. Hinge at the hips to lower your torso so it’s parallel to the ground. Place your right elbow on your right inner thigh and brace your right fist against your left inner thigh. From there, extend your left arm and rotate your torso up toward the ceiling so your left arm passes your left hip on its way to pointing straight up.
Do one or two sets of these rotations, switch arm positions, and rotate for 10 more in the opposite direction.
“Because of the nature of the golf swing, it’s very common for golfers to be more restricted through their thoracic (mid) spine on one side more than the other, so you can always focus more time on the side that feels tighter,” Fleischer says.
You’ll feel a stretch in your hamstrings, too, which Fleischer says is key for taking pressure off of your lower back. This move also “improves your hip-hinge mechanics so you don’t put as much stress on your spine throughout the round,” she says.
Lastly, this stretch will make your thoracic spine more mobile. With the ability to rotate more, your lumbar (lower) spine won’t have to compensate as much, Fleischer says. If your lower back is working less in the golf swing, you’re going to experience less lower back discomfort.
You can do this stretch before or after your round—or both.
“This dynamic move is great for warm-ups to help get a bigger turn and can be done as a post-round stretch to help reset the body and improve symmetry,” she says.
Try it the next several times you play. The cure to your lower back pain could be as simple as incorporating this move into your routine.
Tip adapted from golfdigest.comi
Recipe of the Week
Peeptini
1 Serving
Ingredient
- 1/2 oz. vanilla syrup, plus more for glass
- 1 tbsp. pink sanding sugar
- 1 tbsp. shredded coconut
- 1 1/2 oz. marshmallow vodka
- 1 oz. heavy cream
- 1/2 oz. grenadine
- 1 Peeps chick
Instructions
- Freeze a martini glass until cold, about 15 minutes, if desired.
- Place syrup on a shallow plate. On a separate shallow plate, mix sanding sugar and coconut. Dip rim of glass into syrup, then into sugar mixture.
- Fill a cocktail shaker with ice. Add vodka, cream, grenadine, and vanilla syrup. Cover and vigorously shake until outside of shaker is very frosty, about 20 seconds.
- Strain cocktail into prepared glass. Garnish with Peeps chick.
Recipe adapted from Delish.comii
Travel Tip of the Week
I Used To Work On A Cruise Ship, And These Are The 13 Things You Should Never Leave Port Without
My first career as a cruise ship entertainer had me sailing all over the world, living and working aboard these large floating resorts for six to eight months at a time. After years of roaming the world’s ports and experiencing every ship and shoreside scenario that you could imagine, I became adept at packing a single suitcase to ensure a comfortable life at sea.
Although living on a ship long-term is different from taking a 10-day cruise, crew and guest cruise packing lists are similar — emphasizing items that make sailing more comfortable and easy. Whether you’re embarking on a world cruise or just escaping to the Caribbean for a quick trip, these essential travel accessories are what my fellow seafarers and I would suggest bringing to make life on the water all the more comfortable. From versatile travel bags to helpful gadgets and genius seasick remedies, here’s what to pack for a cruise like a pro.
Travel Voltage Converter
Most ship staterooms are outfitted with a three-prong 110-volt (North America-grounded) and a 220-volt (Europe) outlet. It’s always a good idea to carry an international adaptor and surge protector to safeguard your devices from electric irregularities. What’s more, smaller interior cabins may have only two outlets, which could pose a problem if you and your guest have multiple devices to charge at the same time. Useful for more than just onboard, an internal adaptor is also handy for cruise itineraries that drop you off in multiple countries. Keep this adaptor in your day bag so you can plug it in ashore if your tech needs a charge.
Liquid I.V. Packets
Cruises are vacations, a time to enjoy yourself and indulge. But it’s all too easy to go a tad overboard (ship pun intended) on alcoholic beverages, savory foods, and sunbathing. If you think a hangover is bad, just wait until you have one on a rocky ship at sea. To avoid losing a precious day of your cruise, bring along Liquid I.V. powder, an electrolyte mix that delivers hydration to the bloodstream faster than just water alone. Each bag comes with 16, travel-friendly powder packets and you have your choice between 17 flavors.
Portable First Aid Kit
Visits to the ship’s medical center can be pricey. Avoid this unexpected expense if you can by bringing your own first aid kit. Start by packing your essential prescription medications. Then, add bandages and antibiotic ointment for attending to small surface wounds. Bring pain relief medication and cold medicine, just in case. Don’t forget antacids and over-the-counter medicines to ease digestion. Sunscreen and aloe vera gel are must-haves so you don’t spend your whole cruise hiding from the sun. Bug repellent and after-bite lotion will also ease your sleep if you’ve run into sand fleas at the beach. If you have any allergies, make sure that you have an EpiPen or your chosen allergy medication.
Portable Charger
When I lived on a ship, I would be one of the first ashore and the last back onboard. Exploring new locales is one of the best parts of cruising. If you like to head ashore for the whole day, you’ll want to keep your phone charged so you can navigate your way back to the ship, call for help in case of an emergency, and snap pictures and videos of your destination. Carry a powerful battery bank with you like the Anker Portable Charger so your phone doesn’t die and you’re prepared for long adventures, or fun overnights, in ports of call.
Waterproof Phone Pouch
You’re never far from water on a cruise ship, which means that you’ll want to protect your tech with waterproof gear. Great for island cruise itineraries, this phone bag is watertight and retains touchscreen operations through its polyvinyl shell. It comes with a detachable lanyard should you want to take it into the waves and capture underwater adventures. Even if you’re not going in the water, this pouch will protect your phone from snow and rain, too. Beach-bound cruisers will also find it useful for keeping their phone sand- and salt-free too
Collapsible Umbrella
Weather on a cruise can be tough to predict, particularly for various ports of call. Even if the forecast is fair, weather can change in an instant particularly if you’re cruising near shoulder seasons. You’ll be grateful to come prepared with an umbrella so you aren’t forced to buy the marked-up ones in port or onboard. Even if there’s no sign of rain, a good umbrella doubles as a sun protectant for harsh midday sun.
Formal Night Attire
Almost every cruise has a formal night where guests are encouraged to dress in elegant wear. This event usually occurs on a sea day at the beginning of your itinerary. Formal nights are fun and evoke the old-world, slow-travel glamor of cruising. Even the officers dress up and don their formal ship whites. When everyone onboard participates in the formal night dress code, it makes the event all the more special and luxurious, so remember to bring a few upscale resort looks onboard. This stunning Tadashi Shoji Off-Shoulder A-Line Crepe and Taffeta Gown will do the trick, but if you’re shopping on a budget, there are plenty of swanky cocktail dress options at Amazon; start your search with the Anrabess Pleated Maxi Dress or PrettyGarden One-Shoulder Slit Maxi Dress — starting at $43.
Sand-Free Beach Towel
Most cruise guests bring the ship’s pool towels shoreside for lounging. But, the terry cloth towels cling to the sand, bringing it back in your bag to be dumped on your stateroom floor. If you want a tidier beach trip, bring along a sand-free beach blanket like this Turkish Beach Towel. It’s made with cotton and folds up slim so it won’t take up too much space in your suitcase. What’s more, it dries quickly to prevent your bag and its contents from getting soggy.
Packing Cubes
When I reached out to a crew member friend to discuss packing tips, his first thought was emphatically packing cubes. Organization is key to enjoying your cruise, particularly on the day that you embark as it’s the most hectic day for all staff onboard. By the time that you’re able to check into your room, it’s almost time to sail away, and you’ll probably want to be on deck with a daiquiri and sweet treat in hand, not organizing your wardrobe — which is why I recommend traveling with packing cubes. They’re not only great for condensing your suitcase contents but also keeping them organized and easy-to-spot, so you can spend less time searching for the things you need and make unpacking and getting ready a breeze.
Collapsible Duffel Bag
One of the perks of cruise ship travel is that, unlike airlines, most cruise lines don’t have strict luggage policies. For travelers who like to shop or collect souvenirs, this is a huge perk. On itineraries with excellent shopping, cruising can be a great way to source neat gifts. Onboard shopping is also a fun way to pick up items to remember your trip. If you’re worried that you won’t have room in your case for your purchases, bring a collapsible duffel bag like this handy 40-liter version from REI for your treasures. Amazon reviewers also love the Gonex Foldable Travel Duffle Bag and the Vomgomfom Travel Duffle Bag for the same reason.
Reusable Collapsible Bag
If you’re cruising around islands, you can make this collapsible tote bag your designated beach bag. Its nylon fabric makes it easy to brush off sand and it dries quickly should you need to wash it (or accidentally get it wet while you’re at the beach). If you’re cruising around Europe, you’ll quickly learn that single-use plastic bags are often banned. Many markets, shops, and stores expect everyone to come with their own bag to take away their products. This reusable bag folds to a pocket-size when you’re not using it, so you can keep it in your purse or backpack until you need it.
Ear Plugs
If you’re a light sleeper, the noises of a ship may come as a shock. Whether it’s the sounds of the anchor dropping at 5 a.m. or your raucous neighbors enjoying late-night revelry, earplugs will help you get restful sleep at sea — no matter the time of day. Make sure you pick up this on-sale pack of 60 at Amazon; they’re made with soft foam for a comfortable and adjustable fit and deliver impressive noise-canceling capabilities.
Non-Drowsy Seasick Patches
If your itinerary is taking you through rough waters, like the Drake Passage or the Tasmanian Sea, be prepared with remedies to fight motion sickness. More than 11,500 reviewers swear by these seasick patches that use a holistic herbal blend to fight nausea. The onboard medical center offers Dramamine to seasick guests, which will make you sleepy and groggy. If you want to stay alert while fighting the nausea, these non-drowsy patches are the way to go. A few crew tips for fighting sea stomach: stay on the upper levels of the ship, munch on green apples, and keep your eyes on the horizon.
Tip adapted from travelandleisure.comiii
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Sources:
5 best investments that hedge against inflation, and others to avoid
The Top 5 Ways to Hedge Against Inflation
Protect Your Wealth Against Inflation in Three Easy Steps
Here’s where experts recommend you should put your money during an inflation surge
Disclosure:
Ballentine Capital Advisors is a registered investment adviser. The advisory services of Ballentine Capital Advisors are not made available in any jurisdiction in which Ballentine Capital Advisors is not registered or is otherwise exempt from registration.
Please review Ballentine Capital Advisors Disclosure Brochure for a complete explanation of fees. Investing involves risks. Investments are not guaranteed and may lose value.
This material is prepared by Ballentine Capital Advisors for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation or any particular security, strategy, or investment product.
No representation is being made that any account will or is likely to achieve future profits or losses similar to those shown. You should not assume that investment decisions we make in the future will be profitable or equal the investment performance of the past. Past performance does not indicate future results.
Advisory services through Ballentine Capital Advisors, Inc.
i https://www.golfdigest.com/story/golf-low-back-pain-stretch-cure
ii https://www.delish.com/cooking/recipe-ideas/a43148706/peeptini-recipe/
iii https://www.travelandleisure.com/cruise-packing-list-former-crew-member-picks-8421295
