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TANGIBLE ASSETS, THE ANTIDOTE FOR INFLATION RISK
In many developing countries, there is always the risk for a growing inflation.
It is important to note that the unforeseen inflation is an important source of loss of purchase power.
The inflation expectations underestimate the risk of acceleration of price increase. This is why it is a good time to consider investing solutions to protect you from that possibility; such is the case of tangible assets.
Investing in tangible assets will allow you to stabilize profitability on the long run and reinforce of the portfolio protection against inflation. Among the tangible assets there are the precious metals, such as gold, direct real estate investments, agricultural holdings, vineyards and forests.
Gold is a tangible asset that can be recuperated if an acceleration of the inflation occurs. Gold maintains the real interest rates relatively low or negative.
Direct Real Estate investment
Real Estate is a tangible asset that offers great security.
Before a sudden increase of inflation, commercial or residential direct real estate investments offer partial protection to investors.
If an owner finances his or her real estate property at a fixed interest rate before inflation increases, the cost of the debt will remain stable, while the rental income will increase.
Agricultural holdings, Vineyards and Forests.
Rural properties are a very attractive alternative for investors who wish to increase their portfolio. These tangible assets are not correlated with financial markets and deliver income while offering capital appreciation on the long run.