2022 saw record high inflation, and though things have cooled slightly as the first quarter of 2023 nears its end, experts are predicting higher levels of inflation for the next few years when compared to pre-pandemic levels. As many investors have undoubtedly noticed, the purchasing power of the dollar has diminished. Naturally, the next logical question investors are going to ask themselves will be, “How to protect my money from inflation?”.
This precise question is on many investor’s minds, as global conflict and economic uncertainty looms on the horizon. But as savvy and experienced investors know, having a solid strategy in place is crucial when it comes to getting through a financial crisis.
See how Swiss asset management can provide your portfolio with inflation protection
A HEDGE AGAINST INFLATION IS NECESSARY
Unless you are a day trader your investment portfolio is likely structured in relation to your retirement or another long-term financial plan comprised of years (even decades) of volatile and varying market conditions. Almost certainly, you are going to come across periods of high inflation, and having a sound strategy in place to reduce the negative impacts of inflation is necessary.
There are many different types of hedges against inflation, including high-yield savings accounts, investing in foreign currency, and investing in sovereign wealth funds. While there are undoubtedly many strategies out there, it is almost universally accepted that you need some type of hedge against inflation. How much of your portfolio should be a hedge will be dependent on your risk tolerance, and something that should be strategized to fit your portfolio and risk parameters in accordance with your advisor.
CONSIDER A GLOBAL INVESTMENT STRATEGY
The markets are going to fluctuate, and if your portfolio is unprepared, it’s going to take a hit. As nearly every advisor and investor alike will tell you, diversification is a tried and true way to mitigate risk to your portfolio while maximizing the chance that it does not miss out on lucrative opportunities. However, what many investors fail to understand is that their investments don’t have to be exclusive to the United States, or wherever their country of origin is.
Although while some advisors and experts have long touted the performance of international stocks, fewer still have realized the benefits a global investment strategy can have on their portfolio in terms of a hedge against inflation.
HOW SWISS ASSET MANAGEMENT CAN HELP
Just like investing solely in U.S.-based securities and assets, international investing can be done from a variety of strategies and starting points, from different perspectives seeking different outcomes. However, regardless of how much risk you are comfortable taking on, it’s wise to have some sort of hedge against inflation built into your portfolio. This is where Swiss-based investments can serve a valuable purpose.
Wealth management in Switzerland has a storied history as one of the world’s most stable and reputable financial institutions. The CHF has long been sought out by investors across the globe during times of global uncertainty and financial crisis. Regardless of your investment goals or risk tolerance, investing with Swiss asset management should be a staple of your global investment portfolio.
A DUAL PURPOSE IN THE FACE OF A DIMINISHING DOLLAR
Beginning to invest in a global investment strategy right now will do two things for your portfolio:
- Diversify your portfolio to mitigate risk and volatility while providing you more investment opportunity
- Provide you with a hedge against inflation in the face of economic uncertainty
As many experts predict a recession at some point in 2023, it’s safe to say that inflation is not likely going anywhere soon. And while there will always be money to be made, regardless of market conditions, investors would do well to begin thinking outside of the box and exploring other investment opportunities as we gear up for the coming year. A global investment strategy could protect and bolster your investments, and choosing to invest some of your portfolio into Swiss francs or with Swiss asset management is one excellent way to combat the negative effects of high inflation as it eats away at many investor’s assets and portfolios.
BOTTOM LINE
The past year was rough on many, and many experts are predicting that 2023, while not quite as volatile, won’t be a walk in the park either. More than ever, right now it is crucial to have some type of plan in place for your assets and investments as the power of a dollar continues to weaken.
A global investment strategy is an excellent option for any investor looking to diversify their portfolio, and investing with Swiss asset management is something many investors have wisely done, to the benefit of their portfolios. To see what a global investment strategy looks like for you, and how Swiss asset management can help, contact us today.
