3 Ways To Protect Your Money From Inflation, According to an Expert
“Don’t let fear reign,” he said. “There are plenty of companies out there with pricing power and operational efficiencies that can deliver strong returns, even in a high-inflation environment.”
For retirees or those with lower risk tolerance, Brown recommends guaranteed or low-risk financial vehicles.
“Look into CDs, bonds and other guaranteed investments that can beat or at least keep up with inflation,” he said.
For investors still actively building wealth, Brown suggests looking toward sectors with strong historical performance.
“Technology is one asset class that continues to outperform inflation and the market over time,” he said. “If you want to avoid individual stock picking, consider a tech-focused ETF like XLK or broader ETFs like the S&P 500.”
And for those more advanced in their investing knowledge, Brown points to options trading.
“You have the ability to protect your portfolio, bring in additional income from selling options, and use leveraged strategies that can beat inflation — when used correctly,” he said.
3. Don’t Panic — Think Long-Term
Inflation headlines have a way of making one’s blood pressure skyrocket in a way we probably wish our stock portfolios would. But Brown reminds us that the market, over time, has always recovered.
“Despite pandemics, recessions, and yes — even inflation — the market always goes up in the long run,” he said. “That’s why it’s important to think long term and stick with low-risk investments that align with your goals.”
For many, that could mean investing in ETFs or something like SPY, which tracks the S&P 500. Brown also recommends potentially using options strategies to hedge against downturns.
“Put options can act like ‘insurance’ during market dips,” he said. “And selling call options against your portfolio can be another smart way to generate income and offset inflation risk.”
More than anything, Brown wants people to resist emotional decision-making. “The key is having the right knowledge,” he said. “And letting that guide your decisions — not fear, panic, or uncertainty.”
This article is part of GOBankingRates’ Top 100 Money Experts series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own? Share it on our hub — and you’ll be entered for a chance to win $500.
This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.
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