Home Finance Three Stocks with the Potential to Help Investors Beat Inflation

Three Stocks with the Potential to Help Investors Beat Inflation

by craig upton

Reassurances regarding the temporary nature of inflation from the Bank of England have not convinced investors enough to settle their nerves but given the economic turbulence of the past 18 months or so, such jitters are by no means surprising.

Consequently, there are those who continue to tout the stock market as the best weapon currently available to beat inflation. Quality stocks have the potential to transcend the risks posed by rising prices, though finding safe havens for investment is becoming increasingly difficult.

They do however apparently exist for those who are willing to take the time to look for them, specifically, analysts have been highlighting three potential investment opportunities, all with the supposed capacity to beat inflation.

  1. Precious Metals

Diversifying a portfolio to incorporate the purchase of precious metals has been a popular strategy for generations. Gold is the most obvious and appealing candidate of all, due to its ability to hold onto its value with rock-solid stability in times of inflation.

Options for precious metal investments are by no means thin on the ground. There’s the obvious approach of purchasing bullion outright, which is the preferred option for many. An alternative is to buy an exchange-traded fund (ETF) that incorporates the biggest miners from around the world, or perhaps buy a passive fund that tracks the gold price. 

Of course, there are no guarantees of large (or even small) profits with gold or many other precious metals, though they have traditionally been a robust and dependable investment vehicle, particularly when compared to the rest of the options available.

  1. Real estate

All over the United Kingdom, the real estate market is booming on a level none could have predicted. House prices are hovering around record-highs, demand for desirable properties is outstripping supply and the new way of working from home is transforming homebuyers’ priorities.

Consequently, there is money to be made with real estate investments. Whether it is purchasing properties outright or considering property bonds, options are anything but thin on the ground.

The commercial property sector has become a particular point of interest to many investors, with prices in some regions having plummeted due to an excess of vacant inventory & Covid-19. Inventory, which, in the event of a mass return to conventional on-site working, could result in a major price shift in the opposite direction.

  1. Cybersecurity

Last but not least, the total value of investments in the cybersecurity market is expected to double within the next seven years. With this kind of growth, stocks in the world’s most innovative cybersecurity companies could become a seriously hot commodity.

Keeping an eye on the movers and shakers in the cybersecurity sector could be a savvy move for investors looking to beat inflation with a comparatively safe bet.  

From start-ups to established Silicon Valley tech giants, cybersecurity is pegged by many as the next major technology success story for the years to come.

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