Tuesday, December 16, 2008

You can still make Money in such a High Inflation environment.

The term” investment” has become a phobia for many people all over the world following the global financial crisis. This is because, people who were overconfident about their investing brain and gained huge profits suffered the most. As a whole the whole investment mindset got a tremendous blow. I have personally seen people crying after incurring heavy loses in equity market investment. But whenever God closes all the doors, he also throws the keys and we just have to catch those and find the right keys in the right time. So here comes few facts which will help you regain your confidence of investing as I feel that investment plays an important part in our life and we should always go for planned investment moves as the world is too competitive and the future is unpredictable.

Taking care of this present market scenario, have you ever thought that what will happen if you stop investing? Can you predict that the inflation rate will go down? The answer is,” no one can”. But it’s a fact that we can even manipulate a negative situation in our favor and I feel that the best investment tool to do this is the “Commodities.” The panic of financial crisis has affected us so badly that we forgot to think practically that the rising inflation rates can make us helpless but its very much beneficial to the commodity market. We cry and get afraid when we see that the prices of oil, metals and gold is going high, specially when we have to drive 100 miles both way daily, buy necklace to our wives etc.But then why not invest our money in these commodities. We all can easily predict that the inflation rate will not come down, rather it will go up. So let it be because the more it goes high the more you will get benefited, if you invest in the commodities. May be you think that I have gone mad and weird, but it’s a fact and if you look at things positively then it will actually become positive. Investing in an high inflation situation is actually a wise investment as the real estate prices, metal prices etc is going high. Besides one can also invest in soft commodities like cereals, cottons, potatoes etc, because the values of these goods will also always go high.

How to investment?
It is as easy as investing in the equity market. Various online trading accounts can be easily activated to do this commodity investment where one can track daily even hourly price changes of commodities. There will be daily expert tips on which commodity to buy. Besides one can easily judge which commodity to buy and hold as its pretty easy because in our day to day life we are always aware of commodity prices. A basic judgmental power and keeping eyes open and daily watch over the newspaper is enough to make you a good investor in commodities.

One can also go for some specialized Mutual Funds (don’t get scared) which invest in those stocks only which are linked to the commodity market and will always perform well in a high inflation environment.

So its high time to stop creeping and thinking about the past losses and go for something which can really make a difference.