Want to beat inflation? Divide by four

2 September, 2022

In today’s Exponential Investor:

  • Inflation, inflation, inflation
  • Energy and food costs will increase
  • How to create a defensive portfolio for an economic depression

Rising prices. Cost of living crisis. Inflation.

Normally, these would be topics that most people wouldn’t pay much attention to… but now, they are inescapable.

The prices of key goods – such as energy and food – are rising so rapidly, that Goldman Sachs now believes that the annual inflation rate in the UK will reach 22% sometime next year.

That forecast makes a mockery of the Bank of England’s 13% estimate.

Month-on-month increases in grocery prices continue, with no end in sight. Energy prices for the average household are expected to be 80% higher by this time next year.

Some in UK say they won’t turn on the heater this winter. Food insecurity is taking hold as millions of people say they are skipping meals as the cost of food spirals higher.

Today’s Exponential Investor podcast isn’t warm and fluffy. Rather than mess around, I point out why there is more pain ahead and how you can protect your investments.

That is because things are absolutely going to get worse.

But luck favours the prepared. Breaking up your investments into four key groups can aid you in bracing for the worst and help you catch any upside as inflation whips through.    

Click below to listen now.

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Until next time,

Shae Russell
Co-editor, Exponential Investor