Quick Answers: What’s the Best Investment Strategy During High Inflation?

When inflation runs hot, every dollar you hold loses a bit of its value. The best investment strategy during high inflation isn’t about chasing returns — it’s about protecting purchasing power while staying invested for growth.

Historically, stocks in companies with strong pricing power — those able to pass higher costs on to customers—tend to outperform. Sectors like energy, consumer staples, and healthcare often hold up better because demand for their products remains steady.

Treasury Inflation-Protected Securities (TIPS) can also help, as their principal value adjusts with inflation. Commodities and real assets — like infrastructure or real estate — can provide diversification and act as partial hedges.

But there’s a balance to strike. Inflation cycles don’t last forever, and overreacting can lock you into underperforming assets once prices stabilize. A disciplined mix of equities, inflation-linked bonds, and diversified alternatives — rebalanced regularly — is usually more effective than any single bet.

The key: stay focused on your long-term goals, not short-term headlines.

A fiduciary advisor can help build a portfolio that adapts to inflation without sacrificing long-term growth.