The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
The current rate of inflation doesn’t appear to be easing up, and some experts believe that it may continue to get worse before consumers start to see relief. Most people have been feeling the effects of higher prices on things such as food, gas and housing, but many investors are also concerned about how inflation will impact their portfolios.
Here are 3 alternative asset classes that have historically performed well in years of high inflation that you can easily add to your portfolio today.
Ultra-high-net-worth investors have been including artwork in their investment portfolios for generations. However, the types of paintings that have the potential to provide high returns often cost millions of dollars, putting them out of reach for the average investor.
Masterworks has created an investment platform that gives retail investors access to this exclusive asset class by selling shares of popular paintings that are expected to increase in value over time. According to Masterworks’ research, contemporary art has appreciated at an average rate of 14% annually over the past 25 years and at 23% during years of high inflation.
Current offerings on the platform include works from iconic artists such as Jean-Michel Basquiat, Yayoi Kusama, Joan Mitchell and Keith Haring.
Multifamily Real Estate
Rising home prices have made homeownership less affordable, resulting in more people choosing to rent instead of buy. This situation has created a higher demand for rental units as well as higher rental rates.
The problem that most investors face when considering multifamily real estate as an investment is the high cost of acquiring a property and the work that goes into managing it. Fortunately, several investment platforms have emerged in recent years allowing individual investors to passively invest in multifamily real estate through crowdfunding.
One of the most well-known and reputable platforms available today is EquityMultiple. The platform provides multiple investment options for commercial and multifamily real estate and has provided a historical rate of return of 16.8% for its fully realized deals.
While not often thought of as an investment vehicle, farmland has historically provided stable returns to investors through all market cycles. The demand for farmland is growing almost daily as farms are being converted into new developments and the global population is steadily increasing.
AcreTrader’s platform allows individuals to passively invest in farmland that’s thoroughly vetted by the platform’s management. Investors can realize long-term returns through rental income paid by farmers and the price appreciation over the investment term.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
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