Effects of inflation on investments

[Starmix]

Inflation affects investment in several ways. The returns of investments will be affected, it diminishes them and the rate of return of investment is lower than the inflation rate. The purchasing power of the investors will definitely decline too. Inflation impacts the performance of the different asset classes.

 

[kerryjoy]

Inflation reduces investment returns, lowers purchasing power, and impacts asset performance, making it crucial for investors to consider inflation when planning their investments.

 

[Starmix]

Timing is essential to avoid facing risks and scrutiny by other investors who might have warned him not to proceed. It's best to get updates.

 

[Augusta]

Yes, Inflation is bad with investment it diminishes investment interestand the rate of return of investment is lower than the inflation rate. But it is still better than saving

 

[Suba]

Not all types of investment instruments are easily eroded by inflation, especially if you invest in gold, property, apart from that, bonds also have fixed returns even though inflation is high but the value of money decreases.

 

[Starmix]

Investors suffer the sudden surged of prices and almost all are affected badly. It seems delicate to invest this time.

 

[Suba]

When inflation is high, people think more about how to meet basic needs, rather than investing or saving. Of course, issuers who don't have good fundamentals will see their stock prices fall.

 

[Stardom22]

The inflation indeed impacts the economy very negatively. Both businesses and investments usually at steak when the inflation rates rise for that matter.

 

[Kross]

Since inflation affects the value of money, it automatically means that the value of your investment would greatly reduce with high inflations.

 

[riberet19]

Inflation can also increase the price of the asset since the currency against which the asset competes is devaluing which means that the asset appreciates in value against said currency.

 

[Starmix]

The big capitalists many not be affected much and may be inspired to buy more stocks for example because the small investors may decide to sell their stocks.

 

[riberet19]

It all depends on the money you have to invest, inflation is a double-edged sword, when there is inflation there is also another phenomenon called asset inflation, you should document yourself on that.

 

[eLdavis]

Getting the money to invest has also become an issue for most people due to inflation.

 

[Fidelia]

With the interest on some investments being fixed, inflation makes one to get lower than the real value he or she has projected from such investments.

 

[Stardom22]

Most of those people don't save for the future. In stead they spend all the Money with the loved ones.

 

[Starmix]

Inflation may cause problems for an investor but he must not decide right away. He must double-check the updates if good to invest or not to avoid loosing money.

 

[King Belieal]

Inflation makes it difficult for people to even take up investments because they might just be spending all their funds on sustenance and nothing left to invest with.

 

[Starmix]

Inflation is one cause why my friends paused for in investing another investment. They're afraid of the risks that may occur the time they already released their capital.