The Importance of Owning Assets (In a Season of Inflation)

The importance of owning assets (In a season of inflation)

It’s no secret that the pandemic has dealt a heavy blow to the nation’s economy. Today, the rising cost of food, fuel and, yes, even plywood serves as confirmation of inflation’s dramatic impact on the American way of life.

Yet, while inflation may feel like the onset of an uncontrollable wave, it is crucial to understand that bulwarks exist. Throughout the years of economic upturns, downturns, recessions, and periods of recovery, owning the right assets is an important way of preventing financial loss and, for many, a means of establishing generational wealth.

The key, therefore, lies not only in knowing which assets to invest in but how to leverage them to their fullest potential.

At Gratūs, we believe that real estate investment is one of these “right assets”.

The power and sturdiness of real estate investment become increasingly evident when examining the outcomes of more common investment strategies.

Throughout 2020, the predictions of both economic downfall and unique market opportunities led millions on a quest for stock market fortunes reminiscent of the 19th Century Gold Rush. By the close of the year, JMP estimated that around 10 million new investors had made their way into the market.

Yet, as many have learned and lived to bear the scars, attempting to short the market through various subreddit meme stocks has only stood to benefit the very few and the very lucky.

With Gratūs, the methodology is not to gamble in a winner-takes-all market but to strategically invest in asset classes that traditionally follow inflation trends.

As the overall cost of goods increases with inflation, growing one’s wealth at a rate that outpaces the U.S. dollar becomes vital. And, when it comes to real estate investment, the math is pretty simple. As the price of goods continues to increase, the cost of rent and property values can accelerate at an equal pace.

Therein lies the greatest value of owning real estate.

At Gratūs, our mission is to create more access to this asset class, allowing individuals to help mitigate the erosive effects of inflation as they build their wealth.