- Invest in inflation-resistant assets
During times of high inflation, investors should consider allocating a portion of their portfolios to assets that tend to perform well under such conditions, such as Notes on Mintos, commodities, real estate, and inflation-protected securities.22
- Currency diversification
Given the varying rates of inflation across the major global economies, it’s important to diversify currency exposure in your investment portfolio. This could help mitigate currency risk and protect the overall value of your investments.
- Monitor central bank policies
Central banks play a crucial role in managing inflation and deflation risks. As an investor, staying informed about their monetary policies could help you anticipate changes in the market and adjust your investment strategy accordingly.
- Consider investments in loans on Mintos
On the demand side, investor demand for Notes is affected by various factors, such as the prevailing interest rates in the market, the perceived level of risk associated with the Notes, the economic conditions of the countries where the borrowers reside, and the availability of other investment options.
Overall, investments in loans are typically less influenced by market drivers compared to publicly traded investments, resulting in a low correlation between the two. This means that investments in loans could serve as a buffer against market downturns.
In 2023, Mintos investors experienced growth with an average net return of 2.8%, while the average interest rate increased from 12% to 12.6%.
