Where to put your investments to be ready for inflation.

Money printing is an issue, and anyone with a sizable investment portfolio needs to consider taking measures to protect themselves from inflation. As interest rates are at all time lows bonds are no longer a safe haven like they use to be. And, gold is consistently out shined by other more common and more used commodities. Here are some modern alternative suggestions that do not feel archaic:

1. Stocks. Not just any stocks. Specifically, foreign large cap market leading companies that are cash positive and/or recognizable market leading brands based in countries with stronger monetary policy. Stocks that come to mind are: Siemen, Toyota, Sea Ltd., Roche, Chubb, Spotify, etc. to name a few. The reason is that they are global brands that are easily traded on the NYSE and not as directly susceptible to the rising dollar inflation that a US based company would be. Google countries with strong economic/ monetary policy (like Switerland, Germany, Japan, Netherlands, Singapore to name a few) and you can then search for some great companies based there.
2. Commodities. Now leaving gold off the table. Let’s consider copper and rare earths. Copper is both a useful and finite resource. It is important in infrastructure, electrical equipment (including batteries for electric vehicles), and industry machinery. These are all projected to be hot industries by both the current Biden administration and China. The two largest economies in the world. Check out the ETF: CPER. Moving on to rare earths. A relatively new ETF: REMX tracks this hot commodity. Given the expected rising demand for oncoming tech innovations. These materials are used from everything from illuminated screens, to cars, hard disks, batteries, etc. Most professional investors would recommend commodities exposure of anywhere from 3% to 15% of your portfolio depending on age. The older one is the closer to 15% and the younger closer to 3%.
3. Other currency. I am including Bitcoin and Ethereum on this list. Bitcoin being the primary over Ethereum. As well as foreign currency. If you think Bitcoin is too expensive then remember that the current market cap is around half of Apple’s, and far under gold and the USD. And, it holds up that the cryptocurrency fits the six attributes of: scarcity, divisibility, utility, transportability, durability, and non-counterfeitability. Which can not be said for any fiat currencies or gold. Of course you could also buy Swiss Franc, Japanese Yen, or the Singaporean Dollar to name a few. Which should hold there value compared to the dollar well as there monetary policies protect to inflation. Keeping anywhere from 5% to 10% of a portfolio in cash could be a great place to store money for when the market takes a slight downturn to invest in the dips. Of course this can change largely depending on market fluctuations.
4. Commercial real estate for cash generating businesses. This is obviously not for everyone given the cost to entry and/or debt one may incur entering. But, given the low interest rate environment. And, rising inflation that devalues the loan the banks give you. All under the assumption that you create a successful cash positive business (a big assumption). You essentially let the bank buy a place for you to generate cash flow while inflation eats away at the loan interest payment you pay back the bank. Again this is a big risk. But could pay off very well in the future while letting the bank take the inflation risk holding the debt.