ADVERTISEMENT
  • Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Wednesday, September 17, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
    • All
    • Athletics
    • Basketball
    • Boxing
    • Esports
    • Football
    • Olympics
    • Paralympics
    • Tennis

    Mbappé Scores Twice As Madrid Cruise To Winning Start In Champions League

    Martinelli, Trossard Hand Arsenal Perfect Champions League Start In Bilbao

    FCC Endorses NUGA To Strengthen National Unity

    American Tinch Wins World 110m Hurdles Gold In Tokyo

  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
    • All
    • Athletics
    • Basketball
    • Boxing
    • Esports
    • Football
    • Olympics
    • Paralympics
    • Tennis

    Mbappé Scores Twice As Madrid Cruise To Winning Start In Champions League

    Martinelli, Trossard Hand Arsenal Perfect Champions League Start In Bilbao

    FCC Endorses NUGA To Strengthen National Unity

    American Tinch Wins World 110m Hurdles Gold In Tokyo

  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

Where To Invest During Inflation

by Olamide Ojiokaiye
2 years ago
in Feature
Share on WhatsAppShare on FacebookShare on XTelegram

Most people understand that inflation increases the price of their groceries or decreases the value of the naira in their wallet. In reality, inflation affects all areas of the economy and over time, it can take a bite out of investment returns.

Advertisement

Understanding the relationship between inflation and investments is essential to making informed investing decisions.

Inflation is an economy-wide, sustained trend of increasing prices from one year to the next. The rate of inflation represents how quickly investments lose their real value and how quickly prices increase over time. Inflation also tells investors exactly how much of a return (in percentage terms) their investments need to make for them to maintain their standard of living.

Speaking an Entrepreneur­ship & Business Management expert, Dr. Timi Olubiyi said, “considerably, institutions, businesses, and individuals have the opportunity to beat inflation by accelerating the preservation of capital and strengthening purchasing power with income addition.

“This can be done by acquiring investments particularly assets such as real estate because they usually keep up with inflation. Remember N1 million today will not acquire the same value of investments, goods and services in five years mainly due to inflation. Therefore, investing is key to hedge against a sharp inflation impact because it erodes the value of savings if funds are just left in the bank accounts.”

Related News

How To Buckle Up That Child

2 weeks ago

Love, Not Pressure: Why Your Partner Isn’t Your Provider Yet

2 weeks ago

Olubiyi explained that “supportively, it is imperative to consider investing in other currencies, diversify your investment portfolio internationally if you can, consider inflation-protected securities with potential for higher-growth like equities, Gold Shares ETF, or mutual funds.”

The chief executive officer, Sofunix Investment and Communications, Mr. Olusola Oni, said an investor that has a long-term view can use stocks to hedge against inflation.

According to Oni, stocks tend to grow in value in the long term while holding a diversified portfolio such as 60/40(Stock/Bond) has potential to protect an investor from declining purchasing power. Value stocks, inflation-protected bonds, and real estate are silver bullets that attack inflation.

A value stock refers to companies whose shares trade below intrinsic value otherwise called undervalued stocks, he said.

 

How To Profit From Inflation

Here are inflation hedges that can help keep investors afloat as prices rise:

Real estate; By purchasing real estate, you are also insulating yourself from rising rents. Like any other consumable good, rents tend to rise during inflation surges. Even though mortgages are less flexible than rental agreements, they have an advantage when inflation is high.

Value stocks; Some research has shown that value stocks tend to do better than growth stocks during periods of inflation. Value stocks are companies that have strong earnings relative to their current share price. They are also known to have robust cash flows, which investors typically value when prices are rising.

Growth stocks; Over the past decade, when inflation has been conspicuously absent, growth stocks enjoyed a banner period. But lately, value stocks have staged a comeback. The current environment makes their continued success likely.

Commodities; Commodities include gold and other precious metals, as well as raw materials and various natural resources critical to production. They are generally seen as safe-haven assets during times of uncertainty.

Treasury Inflation Protected Securities (TIPS): They have the advantage of periodic inflation adjustments, a characteristic that standard fixed-rate bonds lack. Investors seeking capital preservation and purchasing power stability should take a look at TIPS as part of their lower-risk portfolio segment.

I-Bonds; Like TIPS, they offer a nearly guaranteed return of principal. Given that many investments are likely to lose real value during inflationary periods, it makes sense to think of other options beyond stocks that stand a chance of keeping pace.

Overall, one of the best ways to combat inflation is to consistently ensure that we are properly diversified and fully invested. Money invested in stocks tends to outpace inflation in the long run, while positions in real estate, commodities, TIPS or I-bonds can only serve as further diversified protection.

Cash on the sidelines is guaranteed to lose value, while long-term bonds will be impacted if interest rates begin to rise.

In general, inflationary periods present the opportunity to revisit your financial situation and make adjustments for what may lie ahead.

Join Our WhatsApp Channel

Tags: inflation
SendShare10212Tweet6383Share

Other News Updates

Feature

How To Buckle Up That Child

2025/09/06
Feature

Love, Not Pressure: Why Your Partner Isn’t Your Provider Yet

2025/09/06
Feature

Idowu: Surviving In Painting, Sculpture Industry Through Tenacity

2025/09/06
Feature

Grace In The Grind: Thriving As A Single Parent

2025/09/06
Education

Trading In Back To School Items As Schools Near Resumption

2025/09/06
Health

Unraveling Marburg Virus Disease, A Rare But Deadly Threat

2025/09/06
Leadership Conference advertisement

LATEST

Sowore Counters DSS Suit, Seeks Enforcement Of Fundamental Rights

Tinubu Back In Abuja After Two-Week Vacation In France

Why We Want Fubara To Join Us – APC

2 Die In Petrol Tanker Accident On Ilorin–Jebba Expressway

12 Banks Clear Recapitalisation Hurdle Ahead Of March 31 Deadline

Reactions Trail JT Useni’s London Property Controversy

126m Enrolled In National Identity Database Reflects Inclusivity – Tinubu

Vigilante Shot Dead As Security Operatives Foil Abduction In FCT

Airline Operators Lament Absence of Insurance Coverage For Airports

Flood Hits 13 Communities In Adamawa

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.