Is Inflation Here to Stay? What Action Can Investors Take?

According to the European Union for statistics “EUROSTAT”, Euro area annual inflation is expected to be 7.5 % in April 2022. This is up from 7.4 % in March 2022. The weighting of the index means that Food, Services, Energy & Industrial Goods are all taken into account; in other words sectors that directly impact the everyday life of consumers.

Whilst we cannot solve the dilemma facing central bankers (namely how to combat inflation, avoid stagflation & manage the underlying debt issue), the market consequences for all of us are real & profound.

• Thinking of that long drive to the south of France?
• Looking forward to spending some time with the family in the Algarve?
• Planning that trip to Croatia to see Dubrovnik?
• Designing that garden house to avoid post-COVID crowds?

Whatever retail purchase is on the horizon, your disposable income has just lost close to 10% of its purchasing power. If it were only an isolated area of the economy that was affected it would be easy to reduce your expenditure by, for example, not eating out, travelling or engaging in certain services.

But it is not...

Inflation has been an ever-present part of our lives with no clear sight as to when it will subside.

The biggest problem that savers are faced with is the lack of yield offered by their savings accounts. A few Belgian banks offer an interest rate that is barely above 0% while others actively apply negative interest rates. Considering the fact that Belgians saved in excess of 300 Billion euros last year, the question that many of us are asking is:

How can I generate real returns from my savings & investments?

At Monnet Capital we recognise the fact that there is no magic solution to providing high returns with zero risk. Any investment poses an inheritant risk either by market valuation, liquidity or lack of real return.

There are however investment strategies that are more helpful in inflationary times...

With over 35 years of combined experience, Monnet Capital's advisors are able to identify effective products from a range of institutional investment portfolios & funds to best construct an inflation friendly portfolio for you across different asset types, countries and currencies. To learn more about about how we can put your money to work during times of sustained inflation, please take a moment to click the button below and complete the contact form provided.

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You are under no obligation in doing so & we do not charge for an initial conversation.