Inflation and Its Impact on Investments
As of September 2024, inflation in the United States stands at 2.4%, which is 0.1% lower than the previous month. However, the core inflation rate accelerated for the first time in a year and a half, rising to 3.3% from 3.2%, according to Bloomberg.
Inflation in the U.S., like in most countries, is calculated based on the Consumer Price Index (CPI) for goods and services, which reflects the final prices of goods, including taxes and various levies.
Inflation itself is a sustained process of price increases for goods and services. Over time, it erodes the purchasing power of money. Even stable income starts losing its value. This creates a need for investors to make decisions and adjust their investment strategies. Otherwise, savings may depreciate.
Which Assets to Acquire
If the decision is made to invest independently, it is essential to acquire assets that are resistant to inflation. The following assets are currently considered inflation-proof:
1. Real Estate
Real estate prices rise every year, generally in line with inflation. Both commercial and residential properties will continue to be valuable assets, as stable income can be generated through rental yields.
2. Stocks
These can include fast-growing companies or established ones with stable asset values. Stocks are one of the best long-term investment options. Over time, the stock market has outperformed all other asset classes.
3. Commodities and Raw Materials
Gold, oil, and other raw materials have long been established as key hedging tools. It is important to understand that investing in these assets does not guarantee profit. However, such investments can help preserve capital and avoid losses.
Strategic Planning and Expert Assistance
For anyone who lacks knowledge of investing or are uncertain where and how to allocate the funds, it is wise not to take unnecessary risks. Only a well-constructed investment portfolio can protect against inflation and generate stable returns. Achieving this requires deep market research, an understanding of macroeconomic factors, and a careful evaluation of risks. Clear decisions must be made while considering inflation dynamics and asset growth prospects. All of this demands long-term effort—regular market monitoring, strategy adjustments, and analysis.
Companies such as Movchan’s Group offer clients the most effective and reliable ways to invest their funds, ensuring their preservation and growth.
Founded 9 years ago, the company has become one of the leading firms in the market and has developed five distinct investment strategy portfolios. Its client base consists of over 450 individuals. The team includes 28 specialists with professional experience ranging from 20 to 30 years.
The founder of the company is Andrey Movchan, a Cypriot financier of Russian descent, an economist, and investment manager with 30 years of experience. He has held senior positions at major companies such as Alpha Group, Guta Group, Troika Dialog, Renaissance Credit, and Third Rome Investment Company. From 2015 to 2017, he managed the "Economic Policy" program at the Moscow Carnegie Center.
Andrey Movchan has also received numerous accolades. In 2006, Forbes recognized him as the "Most Successful CEO of an Asset Management Company in Russia," while RBC named him the "Person of the Year - 2006." In 2007, he was awarded "Best CEO of an Asset Management Company." In 2009, he became the first in Russia to receive the "Legend of the Stock Market" award from SPEARS. In 2011 and 2013, he was a winner in the "Presszvanie" business journalism contest in the category "Word and Deed."
Since 2024, Andrey Movchan has been an expert at the European Center for Analysis and Strategies (CASE).
Media Contact
Company Name: Whitecrow Investments Limited
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Country: Cyprus
Website: https://movchansgroup.com
