How should you invest your money during inflation? – Northeast University | Vette Leader

According to the latest CPI report, inflation rose to 9.1% this June compared to a year ago, crushing the wallet. This puts even more pressure on the Federal Reserve to rein in rising prices by raising interest rates, raising concerns that the economy could enter a recession.

But the current economic conditions have stunned many pundits as data indicators appear to be scrambled (despite rising inflation, recent payrolls numbers have been quite strong). With the diverging readings, some economists are speculating the economy could be stronger than the naysayers are leading us to believe, while others brace for the long-discussed slowdown.

But many Americans can find it difficult to get ahead financially in the current environment. What does all this uncertainty mean for both new and savvy investors?

“If we have a recession, that means there’s a lack of corporate growth, which combined with high inflation means it’s going to be a very difficult time for investors,” says Jingjing Chen, visiting professor of finance at the D’Amore-McKim School of Business.

The housing market

Traditionally, the housing market has been fairly resilient to inflation, Chen says. But the combination of high labor costs and supply chain disruptions affecting commodities has overwhelmed many home buyers during this time.

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