CPI (Consumer Price Index) investing is a strategy that aims to invest in assets that are expected to perform well during inflationary periods. In this article, we will discuss what CPI investing is, how it works, and how you can incorporate it into your investment portfolio.
What is CPI investing?
- Definition of CPI
- How CPI investing works
Benefits of CPI investing
- Hedge against inflation
- Diversification
- Potential for higher returns
Risks of CPI investing
- Interest rate risk
- Market risk
- Liquidity risk
How to invest in CPI
- Treasury Inflation-Protected Securities (TIPS)
- Commodity ETFs
- Real Estate Investment Trusts (REITs)
- Stocks of companies with pricing power