Poll: Always Be Prepared 📈

This week, we asked the Invstr Community where they would allocate their money during an inflation surge. The poll had a major plurality, with 41 percent of Invstrs allocating their money to cryptocurrency. Cryptos like Bitcoin aren’t affected by inflation because they have a limited supply, unlike the US dollar, so many believe that it works as a hedge against inflation. However, the sample size for this has been the COVID-19 economic recovery, so we aren’t sure if it really works as a hedge, making it a surprising first place vote over some of the other options. In second place is placing your money into stocks, which 30 percent of Invstrs chose. Certain stocks in specific industries can make some gains during an inflation surge. However, most of the market is in a slump whenever inflation arrives as it affects future cash flows, which makes this a very surprising second place vote. Last on the podium is the 15 percent of Invstrs that would invest in real estate. Real estate is often considered an amazing inflation hedge as property values rise when inflation surges. We saw this first-hand with the pandemic and other instances, and the only downside is that real estate is an illiquid asset. With the benefits clearly winning this, it’s surprising that this option wasn’t higher on the list.

For fourth place, we have the 10 percent of Invstrs who would place their money in gold. Gold is one of the most famous inflation hedges as it holds its value against currencies, but people are starting to doubt its effectiveness. Essentially, it is a safe option most of the time, so there are points to argue on both sides for its placement in the poll. The last placer is short term bonds, with 4 percent of Invstrs choosing this for their asset allocation. Short term bonds are considered the best type of bonds to hedge against inflation as the payment of long-term bonds is low when inflation arrives. However, you aren’t gaining in this situation, but instead losing less, which isn’t ideal. This justifies its last place finish, and it closes our poll results this week.

With a possible inflation surge coming in the next few months, you could use these poll results to guide your investments during that time. As investors, it’s important to get ready for what could possibly happen in the future. Post your new investments on the poll, and we will see you next week!

The Invstr Team 🙂

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Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

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