The cycle of high inflation in the first five months of the year predicts difficult months for the purchasing power of Mexicans and although prices are expected to return to moderate levels by the summer, nothing prevents you from investing in financial instruments that help you overcome this complex situation.
Edgar Arenas, a speaker at Rankia , and Omar Morales, Director of Investments at Principal Fondos , share some options that will help you give more value to your money.
Where yes?
UDIBONOS . This instrument was created in 1996 and is indexed to inflation, thus protecting the investor. They can be contracted for different terms that go in multiples of 182 days. It can be used for investment funds and it is very common for them to be managed through investment fund operators or brokerage houses for more than five years.
Another characteristic is that they serve to diversify. Investment funds have a horizon of more than one year, liquidity is very wide and this type of option is available every week or every month.
Stocks or equities . Omar Morales, from Principal, recommends investing in companies listed on the stock market because in this environment, companies may be increasing the prices of their products, which in turn will translate into better profit prospects and higher profits for the value Of action.
Real Estate or real estate . The benefit is in the rents of houses, land or apartments, which can be traded long-term worldwide and are adjusted for inflation. Some countries may do reviews every one or two years, so the flow of investments is adjusted for inflation.
Commodities . Commodities are an option at the moment, basically because when inflation is high there is usually an increase in the price of raw materials. An example of this is what is happening right now with soybean and corn prices at levels not seen since 2013.
Do you hear us?
The not recommended
Cetes. The interest rate of Banco de México is 4%, a rate similar to that of Cetes. The disadvantage of investing in these instruments in times of high inflation is that the returns will not be enough to buy some goods. It’s not that you lose money, you just won’t keep your money’s worth.
Dollars. By depending on variables such as monetary policy and the risk of each country, dollars do not influence inflation. Therefore, Principal considers that this is not an instrument that helps to cope with high prices.
