Hi Readers,

In continuation with our earlier article on how to beat inflation, which is going to be one of the threats the world is going to face in the year 2023.

The most commonly used measure of global inflation is the Consumer Price Index (CPI), which measures the change in the price of a basket of goods and services consumed by households. The rate of global inflation can vary depending on a number of factors, including economic growth, monetary policy of the respective Central Banks and commodity prices.

In simpler terms inflation can be referred to the enormous price hike and there is no purchase power with the common public.

Nearly half of the countries in the world are reeling with the double digit inflation and this would add more with the current global  scenario.

With the global risks report published last week, we will be facing the impact on inflation and need to tackle this issue with the adjustments of our investment portfolio in various diverse investment strategies.

The following are some of the precautionary considerations:

In general, the best financial asset classes to beat inflation are those that offer returns that are higher than the rate of inflation. Some examples include:

1. Equities (stocks): Historically, stocks have provided returns that have outpaced inflation over the long-term.
2. Real estate: Real estate can provide returns through rental income and capital appreciation, and can also act as a hedge against inflation as property values tend to rise with inflation.
3. Commodities: Commodities such as gold and other precious metals have been used as a store of value and a hedge against inflation for centuries.
4. Bonds: Bonds, particularly inflation-protected bonds, can provide a stable stream of income with returns that are linked to the rate of inflation.
5. Alternative investments: Alternative investments, such as private equity, hedge funds, and venture capital, may offer higher returns but also come with higher risks.
6. Crypto Assets:  The high risk high earn assets can also be considered when we take much risks for a better return. But the unregulated markets and the uncertainty over the crypto industry is a worrisome factor as of now.

It's important to keep in mind that past performance is not definitely an indicative of future results and it's important to do your own research and consult with a financial advisor before making investment decisions.