Real estate has historically been one of the most effective ways to both hedge against inflation and earn a passive income. And these days, you don’t need to be a landlord to do it. There are plenty of publicly traded real estate investment trusts that provide generous cash distributions to investors. These companies own income-producing real estate, collect rent from tenants, and then pass the money to shareholders in the form of regular dividends.
Realty Income, for instance, has been acquiring and managing commercial properties for over five decades. It earns rental revenue from long-term, net lease agreements and pays monthly dividends to investors. You can look outside of the stock market, too. For instance, some popular investing services let you lock in a steady rental income stream by investing in premium commercial real estate properties — from R&D campuses in San Jose to industrial e-commerce warehouses in Baltimore.
One of the surest signs of surging inflation is in the commodities rally we saw earlier this year. In fact, commodity prices are commonly believed to be a leading indicator of inflation.
So it shouldn’t come as a surprise that oil — the most traded commodity in the world — is also on Kiyosaki’s list.
The price of crude oil has slipped over the past month, but is still up more than 40% year to date.
As you’d expect, strong oil prices benefit oil producers. So far this year, investors have enjoyed outsized returns from names like Chevron (40%), Exxon Mobil (51%), and ConocoPhillips (84%). [At time of this article]
That said, investing in commodities is a particularly volatile undertaking.
If you’d rather invest in something without the extreme ups and downs of stocks, cryptos and commodities, take a look at a few under-the-radar alternative assets.
Traditionally, investing in things like exotic vehicles or litigation finance or even marine finance have only been options for the ultra rich, like Kiyosaki.
But with the help of new platforms, these kinds of opportunities are now available to retail investors, too.
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