The numbers that came out for january were catastrophic.

However, the fact count everyone down by saying that they will raise rates in March.

That seems reasonable since letting inflation out of hands is not a joke.

There are countless of examples of countries that played around with inflation but ended up with hyperinflation that destroyed entire economies.

The currency is the backbone of any economy.

If it's not managed properly, everything is going to collapse.

Even simple double digit inflation is a huge deal Since that freaks out, investors imagine sitting on a pile of wealth of $100 million and you plan to invest it over time.

However, inflation is 10% by the end of the year.

The real value Of your wealth is going to be $90 million, losing $10 million dollars to just holding onto your cash for a year is a disaster.

That creates real panic in the market.

That pushes investors to keep buying assets that are inflation resistant, which spikes prices higher and creates a bubble that further rises inflation.

It's a never ending cycle If you think about it, January 7.5% inflation rate is not accurate since housing makes up the biggest chunk of people's income.

Well makes a small percentage of the consumer price index where inflation numbers are driven from.

So the real inflation is higher for most people.

And now with the invasion of Ukraine, that number is only going to rise.

First of all oil prices are rising since that creates scarcity of oil in the market which affects the prices of literally everything.

It makes it much more difficult to solve the already complicated supply chain problem that has been shattered by the global pandemic.

The world in Ukraine wasn't in anyone's plan, but since it happened, the fact has to consider it raising interest rates will just push the country into stagflation.

That's when the prices keep rising, but the economy stops growing.

So the question is, what should you do to protect your wealth against inflation?

What kind of assets should you buy and how to keep growing your wealth?

No matter how high inflation is, if you're ready, give this video a thumbs up and subscribe When I wake up.

The first thing that I do is check my phone to find out what's happening in the world.

I would spend 10, 20 minutes just scrolling through my social media and I wouldn't really get everything I need.

It was frustrating until I came across morning grow.

It's a free daily newsletter that delivers your business finance and news that you can read in just five minutes.

Traditional news is dry, dense and boring.

While morning brew is witty relevant, informative.

For example, dozens if not hundreds of companies are closing down their stores in Russia because of what's happening in Ukraine except burger king Subway and a few others.

But why, unlike Mcdonald's for example, burger King only has a 15% stake in joint venture that runs burger king in Russia?

So it's not under their control.

How do I know that?

Because I'm subscribed to morning bro, There is no reason not to subscribe the morning brew, click the link in the description.

To subscribe the morning brew today, it's completely free and it takes less than 15 seconds to subscribe number one dividend stocks.

What's the ultimate goal of any business to make money, whether you like it or not?

If the business isn't producing cash then it's not sustainable.

Even if it has $100 billion market cap, we can value companies as much as we want.

But how would they benefit their shareholders if they aren't making money?

And what's the guarantee that they will survive in the future?

That's what makes dividend stocks so different from the rest, especially those which are known as the king of dividends.

These are the companies that have been increasing their dividends for over 50 years.

They have survived worse recessions, inflations, you name it, the stock price don't always performance created tech companies for example, but they still grow usually higher than inflation but at the same time provide you with the cash flow you need, If these companies could increase their dividends for over 50 years, what makes you think that they will stop in the coming future?

That is why there are some of the best assets to hold in your arsenal?

Most people look into the stock market as the only way to invest their savings.

However, the stock market isn't always the best option.

You have far more options than you realize.

# two government bones are not really a big fan of bones, since they usually have the lowest rate of return.

However out of all the investments, government bones are the most reliable for your government bone.

To default the inch charge us, government has to go bankrupt.

The United States is the world's most powerful and stable economy.

If it goes down, the world economy goes down, that's why they are considered as the safest investments ever.

Bone rates have an inverse relationship with interest rates.

If interest rates rise, bone prices drop and vice versa because higher interest rates make other investments more attractive, which lowers the demand for bones and lower interest rates.

Make bones more attractive.

They're not the best source of income, but a lot of wealthy people turn to bones to keep at least part of their assets safe and let them grow at the rate that is slightly higher than inflation.

In the short run, they don't always beat inflation, but over the long run they have proved to be inflation proof number three cash flow businesses since the beginning of the Internet revolution, investors started to care less about the actual profits the business would make and are focused on the value of their stocks.

However, regardless of how much your stocks are worth, you need cash on the table to spend on your needs and wants.

That is why a lot of professional investors care about the cash flow, how much cash there's a certain business generates.

There aren't many options when it comes to cash generating assets besides dividend stocks that we have discussed already.

But sometimes being a partner in a small tree, additional business like a grocery store is far better than holding a bunch of stocks that do not generate any cash.

A grocery store is just one example, Of course they do require some level of management.

But if you have reliable partners then it should not be a big deal.

Number four mutual funds in september 2021 facebook stock price was $378.

Facebook was one of the fastest growing stocks since the beginning of the pandemic.

But in the last six months the stock fell by 45%.

It literally fell to the pre pandemic level as if it didn't gain anything out of super low rates and aggressive bond purchases by the Fed.

That is why mutual funds exist.

They take investors money and invest them in the wide range of securities from stocks to bones to real estate.

There are a million types of mutual funds, from equity funds to income funds.

There are funds that invest in certain sectors.

Others invest based on the size of the companies and some invest in everything.

My favorite are index funds that have been in the market long enough to have some track record, but it's also important to pay attention to the fees they collect hedge funds for example have a really high fee but rarely beat the market.

Vanguard.

S&P.

index is the best in my opinion.

They have the lowest fees ever and have proven to be inflation proof.

They have a track record of over 60 years where they had returned a historic annualized average return of around 10.5% since its 1957 inception through 2021.

I personally keep a big chunk of my investments in the s.

p.

500 and contribute to it every single month.

Number five Real estate.

I couldn't finish this video without the real estate.

The real estate market is so old.

It's difficult to invent anything new in this market.

However, the exact same thing makes it stable, is always outperform inflation Over the long run reliable data on the value of the real estate in the U.

S.

Is relatively milky before the 19 twenties according to the case shiller housing index, the average annualized rate of return for housing incl Please.

between 1928 and 2013.

The inflation adjusted appreciation over the same period have been 1.9%.

Of course it is not as great as the stock markets, but as we have discussed earlier.

Real estate isn't just about price Appreciation, it's also about cash flow and a place to live.

The value that it provides overall is far more than the price appreciation.

But even if we take price appreciation alone, we have enough data since 1920 that proves that it has always outperformed inflation.

Some people might say that this time it is different, inflation is super high, but back in the 1980s, inflation was as high as 13.5%.

Twice the number it is today, it is normal when we have periods when inflation is higher than normal because other times it is lower than normal between 2013 and 2016, it was around 1.5%.

What makes everything even better is if you have a mortgage on your house, especially if you have got a very decent rate since over time, price appreciation beats inflation at the same time the cash flow that it generates will pay off the debt.