How to protect your business against inflation

As a business owner facing the challenge of securing the future of your company, dealing with inflation can be a true test of your resilience.

Increasing costs coupled with decreasing buying power make it harder to stay competitive hence you may assume that taking a loan or passing extra costs onto customers are the  only viable solutions.

Whereas those steps can help, their effect is temporary. 

If you aim to stay ahead of inflation and build a financial buffer in the long run, there is another interesting alternative to consider: investing.

Inflation makes a profound impact on financial markets, creating both risks and new opportunities. Experienced investors know that there are types of assets that can perform very well even under these economic conditions. Generally, popular inflation-proof investments include:

Real estate – economic uncertainty can boost rental income since for many consumers buying a property becomes too expensive. The value of Real Estate Investment Trust (REIT) stocks therefore tends to rise, generating higher investment returns.

Commodities – commodity prices reflect sudden changes in demand or supply. When inflation is accelerating, the price of certain commodities, including precious metals (gold, silver), energy resources ( oil, natural gas) and agricultural goods ( wheat), increase and so do the profits from these investments.

Indices – indices are essentially portfolios including various types of stocks. When inflation is high, value stocks, which trade at lower prices, usually increase in value generating healthy profits.

If you have never tried it before, investing might seem a bit daunting. However, it is like any other skill – entirely possible to master with enough knowledge and opportunities to practise.

E-toro offers you both.

This social investment website enables everyone to invest into financial markets worldwide and its vast portfolio includes inflation-beating stock types mentioned above.

Those who are new to investing can take advantage of the site’s sandbox environment to build a solid financial knowledge and practise different investment strategies without spending real money. 

What’s more, the website also offers newbies the option to copy experienced investors and replicate their purchase and sell decisions.

E-toro’s investment toolkit includes a variety of instruments to understand the ins and outs of investing, do research and identify suitable investment opportunities. 

E-toro’s sandbox account enables you to try investing without spending any real money. You get $100K of fictional credit that can be used to build a portfolio from E-toro’s real assets. The account has the same functionalities as its live version so you can easily get familiar with all and practise what you learn.

This unique feature enables you to not only learn from the best but also copy their investment decisions. As a user you can research top traders on E-toro and copy their investment decisions in your own portfolio.

This section offers you an overview of E-toro's vast asset portfolio and different gateways to explore it. These include:

Daily movers – the best and worst performing stocks of the day

Community choice – the most popular assets held by E-toro users

Trending assets – investing assets that have been rising in value

Trending on feed – assets people talk about the most

Recently added – the latest additions to e-Toro’s portfolio

Smart portfolios – stock collections created by e-Toro experts

Newsfeed enables you to gather useful information about valuable stocks directly from other investors, ask questions and keep track of current trends.

This feature is useful to shortlist and monitor selected stocks before adding them to your portfolio. Here you can keep track of how their value develops on a long and short-term basis and what is general investing sentiment in terms of each stock.

Live portfolio gives you a clear overview of your assets and real-time data about your profits. Here you can easily identify best and worst performing stocks and make future decisions about your investment portfolio.

If you would like to avoid debt and gain a new revenue stream for your business, investing on E-toro is a great start.

Sign up to build your investing skills.