Spencer Li

How to Profit from Inflation? (With 33 Types of Asset Investments)

Thumbnail How to Profit from Inflation

How to Profit from Inflation: The Best Assets to Protect Your Money

Last updated: 3 July 2026 · By Spencer Li, CFTe

To profit from inflation, you hold assets whose value or income rises alongside prices, instead of holding cash that quietly loses purchasing power. The most reliable inflation hedges fall into three buckets: real assets (real estate, commodities, gold, agricultural land, infrastructure), inflation-linked bonds (TIPS and floating-rate notes, whose payouts move with rates), and equities with pricing power (companies that can pass higher costs on to customers, plus REITs, resource and infrastructure stocks). No single asset is a guaranteed win, and many of these only preserve your purchasing power rather than grow it. The honest goal here is defence first: stop inflation from eroding what you have, then look for the assets that genuinely benefit when prices rise.

Here is what inflation actually is, why it hits some people harder than others, and the full menu of assets people use to hedge it.

What is inflation?

Inflation is when the overall price of things goes up over time, so the same amount of money buys less. If a basket of groceries that cost you $100 last year costs $107 this year, that is inflation, and your $100 note is now worth less in real terms.

A few things can drive it: more demand chasing the same goods, higher production costs, or simply more money in the system. It can also show up when supply shrinks, for example during a war or a supply shock.

We measure it with the consumer price index (CPI, a tracked basket of things households typically buy). The percentage change in that basket over a period is the inflation rate. The Federal Reserve (the central bank in the US) leans on that rate when setting monetary policy.

Economists usually split inflation into three types:

  • Demand-pull (more demand than supply can meet)
  • Cost-push (rising production costs get passed on)
  • Structural (deeper problems in the economy, like poor resource use or chronic shortages)

Is inflation good or bad for the economy?

It is genuinely both, which is why it is so often misunderstood.

On the upside, mild inflation can nudge growth. If people expect prices to rise, they spend and invest sooner rather than later. It also quietly shrinks the real burden of debt, because the dollars you repay later are worth less than the ones you borrowed.

On the downside, inflation breeds uncertainty. When prices are hard to predict, people hesitate to make long-term plans, and that hesitation is its own drag on the economy. It also lands unevenly. People on low or fixed incomes feel it most, because their income does not stretch to cover the rising cost of living.

To keep prices stable, central banks use monetary policy, which means controlling the supply of money and credit. The Federal Reserve has three main levers: interest rates, reserve requirements, and open market operations.

How to profit from inflation: the asset menu

There is no single “inflation trade.” What works is owning the right mix of assets that either hold their value, pay income that keeps up with rising prices, or directly benefit when the cost of living climbs.

I have grouped the full menu below into four buckets so you can see the logic instead of staring at a flat list. Read the “Why it hedges” column carefully, because the reasoning is what tells you whether an asset fits your situation.

AssetBucketWhy it hedges inflation
CashDefensivePreserves purchasing power short term, but its real value erodes if you hold too much for too long. Reassess the amount you hold.
High-yield savings accountsDefensivePay more interest than a standard savings account. Rarely fully offset inflation, but soften the erosion.
Fixed deposits (term deposits)DefensiveFixed term, fixed rate, low risk. A parking spot, not a real hedge.
Stocks (general)Equities with pricing powerVolatile short term, but have historically performed well over the long run. Companies can pass higher costs to customers.
Small cap stocksEquities with pricing powerSmaller companies are more sensitive to the economy and can outperform large caps in inflationary periods.
Emerging market stocksEquities with pricing powerMarkets like China and India may be less affected by rising domestic costs at home.
High dividend-yielding stocksEquities with pricing powerA steady income stream that helps offset the hit to purchasing power.
Infrastructure stocksEquities with pricing powerUtilities and transport firms can pass higher costs through to consumers.
Natural resource stocksEquities with pricing powerOil, gas, and mining firms benefit when commodity prices rise and demand stays steady.
International stocksEquities with pricing powerForeign firms may dodge domestic cost pressure. Mind currency risk and political risk.
Preferred stocksEquities with pricing powerFixed dividend, priority over common stock in a wind-up. Steadier income, less inflation-sensitive than common stock.
Real estateReal assetsProperty values tend to rise over time, and as living costs climb, so can the asset.
Agricultural landReal assetsLand values tend to rise, and food demand stays stable even in hard times.
TimberlandReal assetsSteady demand for wood products, and the land itself can appreciate.
Commodities (gold, oil, agriculture)Real assetsPrices tend to rise directly with the cost of living. A classic hedge.
Infrastructure bondsInflation-linked / incomeFund roads, bridges, airports. Steady income, and the underlying assets can appreciate.
Floating rate bonds / notes (FRNs)Inflation-linked / incomePay a variable rate tied to a benchmark, so income rises as market rates rise.
Treasury Inflation-Protected Securities (TIPS)Inflation-linked / incomeUS government bonds engineered to return above the inflation rate.
Inflation-linked bonds (linkers)Inflation-linked / incomeReturns are tied directly to the inflation rate. Issued by governments or corporates.
Corporate bondsInflation-linked / incomeSteady income, but check the issuer’s creditworthiness. Value can still be dented by inflation.
Municipal bondsInflation-linked / incomeOften tax-free income from state and local government projects. Check the issuer’s credit.
Index funds (general)FundsTrack an index like the S&P 500. Diversified, good for long-term holders.
Real asset fundsFundsHold physical assets (property, commodities, infrastructure) that can appreciate with inflation.
Balanced fundsFundsA mix of stocks, bonds, and other assets for diversification and steadier results.
Infrastructure fundsFundsHold utilities, transport, and infrastructure bonds. Steady income plus appreciation potential.
Commodity fundsFundsHold a basket of commodities, so they ride rising commodity prices.
Real estate investment trusts (REITs)FundsOwn and operate property. Steady income, and real estate tends to appreciate.
Floating rate loan fundsFundsHold variable-rate loans, so income rises with rates and inflation bites less.
Municipal bond fundsFundsA basket of munis. Often tax-free income, less inflation-sensitive than other bonds.
Collectible assets (art, antiques, rare coins)AlternativesCan appreciate, especially in inflationary times. Hard to value and price; expect big swings.
Alternative investments (hedge funds, private equity)AlternativesPotential for higher returns and lower inflation sensitivity. Illiquid and riskier; not for everyone.
Cryptocurrencies (e.g. Bitcoin)AlternativesSome see them as a hedge because they are not tied to fiat currency. Highly volatile.
Master limited partnerships (MLPs)AlternativesOwn energy assets like pipelines. Steady income, and energy demand stays stable.

The pattern under all of this is simple. The assets that hedge inflation best are the ones that either own something real, lend at a rate that floats up with inflation, or sell something whose price they can raise. The assets that lose to inflation are the ones with a fixed payout and nothing real behind them.

Defence versus offence: an honest distinction

Here is the part most “profit from inflation” articles skip.

Most of the assets above defend your purchasing power. They stop the leak. They do not necessarily make you money. Holding cash in a high-yield account or buying TIPS is defence: you are trying not to fall behind.

A smaller set can actually outperform. Real assets and equities with genuine pricing power can rise faster than inflation, not just keep pace with it. That is offence.

Do note that, the two are different jobs, and you size them differently. Mixing them up is how people convince themselves a savings account is an “inflation strategy” when it is really just a slower way to lose.

Where the human edge comes in

A screener will hand you a list of “inflation hedges” in a second. That part is now free. What it will not do is tell you how much cash you can stand to hold without bleeding real value, which of these assets actually fits your time horizon and risk tolerance, or when an inflation theme is already priced in and the crowd is late. The list is the easy part. Judgment, sizing each position for the volatility it carries, and knowing which hedge the moment actually calls for is the work. That is the first of the Five Edges that no tool can trade for you.

Concluding thoughts

Inflation cuts both ways for an economy, and it quietly cuts into your personal finances whether you act or not.

Once you understand the menu, holding the right cash buffer, owning real assets and quality equities, or adding inflation-linked bonds, you can take real steps to protect the purchasing power of your wealth. Just keep two things in mind. Some of these strategies only minimise the damage rather than turn a profit. And no investment is a sure thing, so weigh the risks and rewards before you commit a single dollar.

FAQ

What is the best investment during inflation?
There is no single best one. Over the long run, real assets (real estate, commodities, gold) and equities with pricing power tend to perform well, while inflation-linked bonds like TIPS are built specifically to return above the inflation rate. The right mix depends on your time horizon and risk tolerance.

Is cash a good hedge against inflation?
Cash preserves purchasing power in the very short term and gives you flexibility, but its real value erodes the longer you hold it during inflation. A high-yield savings account softens the erosion, but rarely offsets inflation fully. Treat cash as a buffer, not a hedge.

How do TIPS protect against inflation?
Treasury Inflation-Protected Securities (TIPS) are US government bonds engineered to deliver a return above the rate of inflation, so their payout rises as inflation rises. That makes them one of the few assets designed from the ground up to hold real value when prices climb.

Why does real estate hedge against inflation?
Property values and rents tend to rise over time, often in line with the rising cost of living, so the asset and its income can keep pace with inflation. REITs (real estate investment trusts) give you similar exposure without owning a building directly.

Can stocks beat inflation?
Historically, stocks have outperformed inflation over the long run, because companies can pass higher costs on to customers through higher prices. They are volatile in the short term, so they suit long-term holders rather than anyone who needs the money soon.

Now that you have the full menu, which of these assets are you planning to add to your portfolio? And is there an inflation hedge I have missed? Let me know in the comments.

If you want the bigger picture on building a portfolio that holds up across different market conditions, read the pillar: The Definitive Guide to Investing and Building Wealth.

Want a simple system instead of a 30-item shopping list? Grab the free 15-Minute Swing Trading Starter Kit. It is the exact routine I use to scan once a day and trade any market in 15 minutes.

About the author. Spencer Li is the founder of Synapse Trading and a Certified Financial Technician (CFTe) with 15 years of trading across stocks, forex, crypto, commodities, and bonds. His trade log is public, 404 trades, losses left in. He teaches low-risk swing trading in 15 minutes a day, one system for any market.

Education, not financial advice. Synapse Trading is not licensed by MAS to advise on investment products. Trading carries risk of loss; past performance is not indicative of future results.

Related

Definitive Guide to Investing and Building Wealth (pillar) · How to invest in REITs · Asset allocation and diversification · Investing in commodities and gold

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Spencer Li

Does an Inverted Yield Curve Lead to Recession, and How to Invest in Such a Market?

Thumbnail Does an Inverted Yield Curve Lead to Recession

Thumbnail Does an Inverted Yield Curve Lead to Recession

Looking to better understand the economy and financial markets?

The yield curve is a must-know!

This powerful tool shows the relationship between bond interest rates and payback times, giving us valuable insights into what people expect for economic growth and inflation.

But that’s not all – the yield curve can also impact financial institutions and even signal potential recessions.

In this blog post, I’m going to talk about what the yield curve is, why an inverted yield curve can lead to recession, and how to invest in such an environment.

 

What is the Yield Curve?

The yield curve is a chart that shows the relationship between the interest rate earned by investors on a bond and how long it will take for the bond to be repaid.

It’s usually plotted on a graph with the interest rate on the vertical axis and the time it takes to repay the bond on the horizontal axis.

 

normal yield curve

When the curve is going up, it means that bonds with longer payback times have higher interest rates than bonds with shorter payback times.

This is called a normal yield curve.

 

Yield Curve

When the curve is going down, it means that bonds with shorter payback times have higher interest rates than bonds with longer payback times.

This is called an inverted yield curve.

What Can the Yield Curve Tell Us?

The yield curve is a really important indicator of what’s going on in the economy because it gives us an idea of what people expect to happen with economic growth and inflation in the future.

A normal yield curve usually means that the economy is doing well and that people expect economic growth and inflation to pick up in the future, which is why they’re willing to accept lower interest rates on long-term bonds.

An inverted yield curve, on the other hand, often means that the economy isn’t doing so hot and that people expect economic growth and inflation to slow down in the future, so they want higher interest rates on long-term bonds.

What Affects the Shape of the Yield Curve?

There are a few things that can affect the shape of the yield curve.

One of the biggest factors is the level of short-term interest rates set by the central bank.

When the central bank raises short-term interest rates, it can lead to an upward sloping yield curve because investors want higher interest rates on long-term bonds to make up for the increase in short-term rates.

When the central bank lowers short-term interest rates, it can lead to a downward sloping yield curve because investors are willing to accept lower interest rates on long-term bonds due to the lower short-term rates.

The supply and demand for bonds can also affect the yield curve.

If there’s a lot of bonds available in the market, it can push down bond interest rates and lead to a downward sloping yield curve.

If there’s not a lot of bonds available, it can lead to higher bond interest rates and an upward sloping yield curve.

The expectations of market participants about future economic conditions can also influence the yield curve.

If people expect economic growth and inflation to pick up in the future, they might be willing to accept lower interest rates on long-term bonds in the hopes of getting higher returns later on.

This can lead to an upward sloping yield curve. If people expect economic growth and inflation to slow down, they might want higher interest rates on long-term bonds to make up for the lower expected returns.

This can lead to a downward sloping yield curve.

How Does an Inverted Yield Curve Lead to Recession?

Okay, so why does an inverted yield curve lead to a recession?

It’s all about how it can affect the behavior of businesses and consumers.

When the yield curve is inverted, with short-term rates higher than long-term rates, it can signal that investors are more worried about the short-term economic outlook.

This can make businesses less likely to borrow money for long-term projects, like building new factories or expanding operations.

And it can also make consumers less likely to take out long-term loans, like mortgages, to buy homes or cars.

When businesses and consumers are less likely to borrow and spend money, it can lead to a slowdown in economic activity, which can potentially turn into a recession.

An inverted yield curve can also affect the way banks and other financial institutions make lending decisions, which can further impact economic activity.

It’s important to note that the yield curve is just one indicator and no single indicator can predict the future with 100% accuracy.

But it can give us an idea of what people are expecting to happen with economic growth and inflation in the future, which can be helpful in understanding the potential risks and opportunities in the financial markets.

How to Invest in an Inverted Yield Curve Environment

So, you’re wondering how to invest during an inverted yield curve environment?

This can be tricky because an inverted yield curve is often seen as a sign of an impending recession, which is generally not good news for the economy.

However, there are a few strategies you can consider.

One option is to focus on defensive investments that tend to do well when times are tough.

These might include stocks in utilities, consumer staples, and healthcare companies, as well as bonds with shorter payback times.

Another strategy is to diversify your portfolio to include a mix of different types of assets.

This could mean stocks, bonds, real estate, and other alternative investments.

Diversification can help to spread out your risk and increase your chances of making some money over the long haul.

It’s also important to think about your investment time frame and risk tolerance.

If you have a longer time horizon and are comfortable with taking on some risk, you might be able to ride out market ups and downs and potentially benefit from a rebound.

But if you have a shorter time frame or are more risk-averse, it might be smart to be more cautious and reduce your exposure to risky assets.

Just keep in mind that investing during an inverted yield curve environment can be complicated and carries its own risks.

Concluding Thoughts

In conclusion, the yield curve is a really useful tool for understanding what people expect to happen with the economy and the potential risks and opportunities in the financial markets.

It’s important for investors, policymakers, and market participants to pay attention to the shape of the yield curve to get a sense of where the economy might be headed and what the potential implications might be.

Now that I have shared all about the inverted yield curve, what do you think are some of the best investment opportunities and strategies to use when the yield curve is inverted?

Let me know in the comments below.

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Spencer Li

The Rise and Fall of FTX & FTT Token (Will Investors Get Their Money Back?)

Thumbnail Rise and Fall of FTX

What Happened to FTX and Sam Bankman-Fried? The Collapse, the FTT Token, and the Lesson

Last updated: 2026-06-14 · By Spencer Li, CFTe

FTX was a major cryptocurrency exchange founded by Sam Bankman-Fried that collapsed in November 2022, going from a $32 billion valuation to bankruptcy in a matter of days. The trigger was its own token, FTT (the native token FTX issued and used on its platform). When rival exchange Binance announced it would sell its entire FTT position, worth around $529 million, the token’s price collapsed, customers rushed to withdraw, and the exchange could not cover them. FTX filed for Chapter 11 bankruptcy protection. Bankman-Fried was arrested in December 2022 on fraud charges, and the company was accused of undisclosed leverage, price manipulation, and self-dealing between FTX and its affiliated trading firm, Alameda Research. Investors and customers lost billions, and the replacement CEO, John Ray, said not all of it would be recovered.

The short version: a business propped up by a token it printed itself is only as solid as confidence in that token. When confidence broke, everything tied to it broke at once. Here is the full story, and the one lesson that actually protects you.

What is FTX?

FTX was a cryptocurrency exchange. A cryptocurrency exchange is a platform that lets people buy, sell, or trade cryptocurrencies for other assets, such as traditional fiat money (government-issued currency like USD) or other digital coins. Exchanges are the main place people get in and out of crypto.

They are not all the same. Some only let you trade specific pairs of coins; others offer a wide range. Some are built for professional traders, others for beginners. FTX positioned itself toward the serious end of that spectrum, and for a while it was treated as one of the more credible names in the industry.

What is the FTT token?

FTT was the native token of FTX, a cryptocurrency that FTX itself issued. It was used on the platform for various purposes, like paying fees and unlocking special features for traders.

Here is the part that matters. The value of FTT was closely tied to FTX’s own performance and reputation. So when FTX wobbled, FTT did not act like an independent asset that might hold its ground. It fell with the company. That circularity, a company leaning on a token whose price depends on the company, is the structural crack the whole story runs through.

How did FTX grow so quickly?

FTX scaled fast on aggressive marketing. It ran a Super Bowl ad campaign and bought the naming rights to the home arena of the Miami Heat basketball team. It got involved in political lobbying, made donations to various causes, and worked to position itself as a supporter of the broader crypto industry.

Timing helped too. The crypto market had been volatile and had seen significant growth in the years before, and that rising tide lifted FTX along with it. Big spend plus a hot market made the company look unstoppable. It was not.

The fall of FTX: how it unfolded

In November 2022, FTX filed for Chapter 11 bankruptcy protection after its valuation plummeted from $32 billion to nearly nothing in just a few days. That also wiped out most of Bankman-Fried’s net worth, previously estimated at around $16 billion. By his own account in November 2022, he had roughly $100,000 left in his bank account.

The collapse came after questions surfaced about how the company actually operated. FTX was accused of questionable practices: undisclosed leverage (borrowing the platform was not transparent about), manipulation of certain crypto prices, and allegations of insider trading and self-dealing between FTX and its affiliated trading firm, Alameda Research. As those concerns spread, confidence drained, and a business built on confidence cannot survive that.

Here is the sequence, stripped to the bones:

StageWhat happenedWhy it mattered
The setupFTX issued FTT and let its value ride on the company’s own reputationThe exchange and its token were not independent; they were one bet
The sparkBinance announced it would sell its entire FTT position, around $529 millionA large, public sell signal from a rival cracked confidence in the token
The runFTT’s price plummeted; customers rushed to withdraw fundsThe exchange could not cover withdrawals tied to a now-falling token
The collapseFTX filed for Chapter 11 bankruptcy; valuation fell from $32B to near zero in daysBillions in customer and investor money were frozen
The falloutBankman-Fried arrested (Dec 2022) on fraud charges; reputation destroyedOne of the largest financial frauds described in US history, per prosecutors

Binance’s CEO, Changpeng Zhao, framed the decision to liquidate the FTT holdings as protecting the interests of its users and the wider crypto community. Whatever the motive, the public announcement was the spark. Once a large, credible holder signals it is dumping a token, everyone else does the math on what that means for the issuer.

Why did FTX collapse? The shady practices

The legal trouble was not the only problem. As the situation developed, it became clear FTX had engaged in practices that should have been disclosed and were not.

  • Undisclosed leverage. Borrowing and risk-taking the platform did not make transparent to users.
  • Price manipulation. Allegations that FTX influenced the prices of certain cryptocurrencies.
  • Insider trading and self-dealing. Concerns about how money moved between FTX and Alameda Research, the affiliated trading firm.

A class-action lawsuit filed in Florida in November 2022 accused Bankman-Fried of building a fraudulent crypto scheme aimed at unsophisticated investors across the US. It named celebrities including Steph Curry, Shaquille O’Neal, Shohei Ohtani, Naomi Osaka, Larry David, and Kevin O’Leary as alleged accomplices for their roles promoting the platform. Bankman-Fried retained white-collar crime lawyer Mark S. Cohen, while Caroline Ellison, who led Alameda Research, retained the firm Wilmer Cutler Pickering Hale and Dorr.

Will FTX investors get their money back?

This is the question every affected customer asked, and the honest answer at the time was: probably not all of it, with a decent chance of getting at least something.

In December 2022, FTX and its affiliated debtors filed a motion with the bankruptcy court seeking approval to sell four businesses, including Embed, LedgerX, FTX Japan, and FTX Europe. The point of those sales was to raise funds to pay down FTX’s debts and return something to creditors. Bankruptcy recovery works like that: assets get sold, claims get ranked, and creditors are paid back in pieces over time, not refunded in full overnight.

Bankman-Fried had been seen as a leading figure in crypto. The allegations and the collapse destroyed that standing, his own and the company’s.

What is the lesson? Do your due diligence

So what do you actually take from all of this?

It is a cautionary tale about the risks of crypto, and a plain reminder to do your due diligence before putting money into any investment. Two specific red flags this saga hands you for free:

  1. A company leaning on a token it printed itself is a circular bet. If the asset backing the business is the same business’s coin, there is no independent floor under it.
  2. Where your money sits is its own risk, separate from what you are trading. Counterparty risk (the risk the platform holding your money fails) is real, and it does not show up on a price chart.

Personally, this is where I keep coming back to a point that has nothing to do with picking the right coin. A scanner can flag a price pattern. A research feed can pull a company’s headlines. Neither one will tell you to stand aside because the whole structure smells circular, or to keep your size small when the story sounds too good. That judgment, the decision to walk away from a thing everyone else is piling into, is the first of the Five Edges, and it is the part no tool trades for you. FTX did not fail because traders could not read a chart. It failed because trust was placed where it should not have been.

This is the kind of thing the Ultimate Guide to Blockchain and Cryptocurrencies is built to walk you through: how the plumbing actually works, so you can spot the cracks before they spread.

FAQ

What happened to FTX?
FTX was a cryptocurrency exchange that collapsed in November 2022, falling from a $32 billion valuation to bankruptcy in days. It filed for Chapter 11 bankruptcy protection after a crisis of confidence in its own FTT token triggered a wave of customer withdrawals it could not cover.

Why did FTX collapse?
The trigger was rival exchange Binance announcing it would sell its entire FTT position, around $529 million, which crashed the token’s price. Underneath that, FTX was accused of undisclosed leverage, price manipulation, and self-dealing between FTX and its affiliated trading firm, Alameda Research.

What is the FTT token?
FTT was the native token issued by FTX and used on its platform for fees and special features. Its value was closely tied to FTX’s own performance and reputation, so it fell along with the company rather than holding independent value.

Who is Sam Bankman-Fried?
Sam Bankman-Fried was the founder of FTX. Once estimated to be worth around $16 billion, he was arrested in December 2022 on fraud charges, in a case prosecutors described as one of the largest financial frauds in US history.

Will FTX customers get their money back?
Recovering the full amount was always unlikely, though there was a reasonable chance of getting at least part of it back. FTX sought to sell businesses including Embed, LedgerX, FTX Japan, and FTX Europe to raise funds and return money to creditors through the bankruptcy process.

The FTX story is dramatic, but the takeaway is boring on purpose: confidence is not collateral, and convenience is not safety. Were you one of the people who had funds trapped in FTX, or did you steer clear? Let me know in the comments.

If you want the bigger picture on how exchanges, tokens, and crypto plumbing actually work, read the pillar: The Ultimate Guide to Blockchain and Cryptocurrencies.

Want a calmer way to trade through chaos like this? Grab the free 15-Minute Swing Trading Starter Kit. It’s the exact routine I use to scan once a day and trade any market in 15 minutes, without betting the house on any single coin or exchange.

About the author. Spencer Li is the founder of Synapse Trading and a Certified Financial Technician (CFTe) with 15 years of trading across stocks, forex, crypto, commodities, and bonds. His trade log is public, 404 trades, losses left in. He teaches low-risk swing trading in 15 minutes a day, one system for any market.

Education, not financial advice. Synapse Trading is not licensed by MAS to advise on investment products. Trading carries risk of loss; past performance is not indicative of future results.

Related

Ultimate Guide to Blockchain and Cryptocurrencies (pillar) · What is Bitcoin and how does it work · How to spot a crypto scam · Risk management for traders

0 Comments/by
Spencer Li

Weekly Market Wrap: The Bears are Back!

2022 09 12 15 31 31

Last week, it was an eventful week filled with exciting news release, such as the CPI (Consumer Price Index) and the FOMC rate announcements.

The CPI showed a lower than expected rate of inflation, so the markets rallied, but it turned out to be a false breakout as prices closed back down by the end of the day.

The next day, the FOMC announced rate hikes in line with expectations, but showed no signs of pivoting any time soon, so the bear market resumed (as we predicted), and prices started heading south.

There is a good chance of prices hitting new lows before the end of the year, so I will gradually accumulate more shorts as my profits (buffer) increase.

If you missed out on the excellent shorting opportunity last week, fear not, because there will be more pullback opportunities to short soon.

Join us for real-time updates and daily trading opportunities in our “Daily Trading Signals” Telegram channel!

 

2022 09 12 15 31 31

[Photo: Iskanderkul Lake & Waterfall, Tajikistan – See my full travel photo log!]

For our weekly market wrap, we go through some of the trade calls and analysis from last week, which gives us valuable insights for the week ahead.

We cover 3 main markets with a total of 200+ counters, so we will never run out of trading opportunities:

By covering a broad range of markets, we can focus our attention (and capital) on whichever market currently gives the best returns.

Click here to receive all these signals in real-time for only $67 a month! You will get several signals a day, and even taking just 1 trade the whole month can easily cover the fee, so what are you waiting for?

 

Weekly Market Outlook Video

Trading Signals weekly market outlook 131222

Weekly Market Outlook (11 December 2022)

2 major pieces of news this week:
13 Dec – CPI data
14 Dec – FOMC

Stock market indices are at crucial points, so I have placed price triggers so that we will know the moment any breakout occurs.

 

Portfolio Highlights

Trading Signals portfolio updates 131222

Weekly Portfolio Updates (11 December 2022)

With unclear direction on the stock market, the best strategy now is to hold bonds for high yields.

 

Forex & Commodities Market Highlights

Trading Signals NZDCHF 141222

NZDCHF is forming a tight consolidation above the support level, can consider going long with a tight stop below the support level.


Trading Signals CHFJPY 131222

Following up on CHFJPY, it has gone up +399 pips profit since we made the call. Congrats to those who went long! 💰🔥💪🏻

Now, we will continue to hold and see if it can break out of the huge bull flag and make new highs.

 

Trading Signals EURAUD 141222

Exactly as predicted for EURAUD, congrats to those who went long! 💰🔥💪🏻

 

Trading Signals EURCAD 131222

Following up on EURCAD, it is up +673 pips profit since our call! Congrats to those who went long! 💰🔥💪🏻

 

Trading Signals USDSGD 151222

Strong rebound on USDSGD as predicted, congrats to those who traded the bounce! 💰🔥💪🏻

 

Stock & Bond Market Highlights

market poll 171222

A market poll we did last week, and it seems almost 1/2 thought that the market will make new highs, while about 1/3 thought the market would make new lows.

 

Trading Signals all 3 markets 151222

After a false breakout a few days ago on the CPI data, all the 3 US stock indices (Dow Jones US30, Nasdaq 100 US100, S&P 500 US500) are now resuming the downtrend.

I have added more short positions. Will we see new lows before the year is over?

 

Trading Signals CPI news 141222

CPI with economist forecasts

 

Trading Signals FOMC news 121222

https://www.calculatedriskblog.com/2022/12/fomc-preview-50bp-hike-increase.html

 

Trading Signals fed news 161222

https://www.cnbc.com/2022/12/14/fed-rate-decision-december-2022.html

 

Trading Signals US stocks bonds return 121222

US Stocks vs Bonds Returns 1926-2022

 

Crypto Market Highlights

Trading Signals crypto news 131222

US prosecutors consider filing criminal charges against Binance and CZ for possible money laundering and sanction violations

Those with money in Binance, might want to start moving it out just in case:

https://www.reuters.com/markets/us/us-justice-dept-is-split-over-charging-binance-crypto-world-falters-sources-2022-12-12/

 

 

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Spencer Li

Tips & Strategies for Trading While Travelling

Thumbnail Tips Strategies for Trading While Travelling

Thumbnail Tips Strategies for Trading While Travelling

Are you ready to combine your love of trading and traveling?

Imagine waking up in a new city every few weeks, with the freedom to explore and experience new cultures while also making smart financial decisions and potentially earning passive income through the financial markets.

Trading and traveling go hand in hand, allowing you to live a nomadic lifestyle while still being able to earn a living.

Are you ready to join the ranks of successful traders who have turned their passion for finance into a globally-mobile career?

In this blog post, I will cover all the best tips for trading while travelling, and some simple strategies you can use to make it as stress-free as possible so you can still enjoy your holiday.

 

Infographic Tips Strategies for Trading While Travelling

 

The Right Mental State

Trading can be a stressful activity, especially when it involves significant amounts of money.

It’s important to adopt a stress-free mental state while trading and travelling in order to make better decisions and reduce the risk of making mistakes.

Here are a few tips to help you adopt a stress-free mental state while trading:

  1. Have a plan: It’s important to have a clear plan in place before you start trading. Know your goals, risk tolerance, and exit strategy before you enter a trade. This can help you stay focused and make better decisions.
  2. Take breaks: It’s important to take breaks and step away from the markets from time to time. Take breaks to clear your mind and relax. This means limiting your trading time to a minimum while on holiday.
  3. Practice mindfulness: Mindfulness is the practice of being present in the moment and not getting caught up in the past or the future. It can help you stay focused and make better decisions.

Tips for Trading while Travelling

Trading while travelling can be challenging, as it requires staying up-to-date with the latest market news and having access to a reliable internet connection.

However, with the right tools and strategies, it is possible to continue trading while on the go.

Here are some tips for how to trade while travelling:

  • Use a reliable trading platform: Choose a trading platform that is accessible from your smartphone or laptop, and that offers real-time market data and analysis. This will allow you to stay on top of market movements and make informed trading decisions while on the move.
  • Keep up with the news: Follow financial news outlets and use their app or website to stay up-to-date with the latest market news and analysis. This will help you understand the factors that are influencing the market and make more informed trading decisions.
  • Use stop-loss orders: Stop-loss orders are a useful tool for managing risk while trading. These orders allow you to set a maximum loss that you are willing to incur on a trade, and the trade will be automatically closed if this loss threshold is reached. This can help protect your capital while you are unable to actively monitor the market.
  • Use a VPN: A virtual private network (VPN) can help protect your online activity and keep your personal information secure while you are travelling. This is especially important if you are using public Wi-Fi to access your trading platform.
  • Always plan beforehand: Have a clear trading plan and stick to it, even while travelling, to help you stay disciplined and focused on your trading goals.
  • Track your trades: Stay organized and keep track of your trades, so you can easily review your performance and make any necessary adjustments to your trading strategy.
  • Less is more: Remember to take breaks and relax, as travelling can be stressful and can impact your ability to make good trading decisions.
  • Keep your trading plan simple: While it can be tempting to try and take advantage of every trading opportunity while you are travelling, it is important to keep your trading plan simple and focused. Stick to your trading strategy and avoid making rash decisions based on limited information.
  • Time zones and market conditions: If you are traveling across time zones, you will need to take into account the different trading hours of the markets that you are interested in. In addition, you may need to adjust your trading strategy to account for any changes in market conditions or liquidity that may result from your travel.
  • Use your “spare” time: When you are waiting at the airport, or travelling on long bus rides, you can use this time look at charts and place price alerts, so that afterwards you can focus on enjoying your holiday, and only need to take action when the price alerts get triggered.

Trading Strategies that Require Less Time

Once you have these things in place, you can start thinking about the actual trading.

If you are an experienced trader, you may already have a strategy that you can use while traveling.

If not, you may want to consider swing trading, or simple trend-following strategies that can be easily implemented even when you are on the go.

a) Swing Trading Strategies

Swing trading is a trading strategy that involves holding assets for a few days to a few weeks, aiming to capture medium-term price movements.

It is a form of active trading that is intermediate in nature, falling between long-term investing and day trading, so it does not require you to spend much time monitoring the markets like in day trading.

Swing traders typically look for assets that are showing strong price momentum and aim to enter trades at key support and resistance levels.

They may use technical analysis tools, such as chart patterns and indicators, to help identify potential trades.

One of the benefits of swing trading is that it allows traders to take advantage of both the uptrends and downtrends in the market.

It also gives you more trading opportunities compared to long-term investing because it doesn’t involve holding assets for several years or more.

b) Trend-following Strategies

Trend following is a trading strategy that involves buying assets that are showing an uptrend and selling assets that are showing a downtrend.

The idea behind trend following is that prices tend to trend in a particular direction over time, and by following the trend, traders can potentially profit from these price movements.

Trend followers typically use technical analysis tools, such as moving averages, to help identify trends and make trading decisions.

They may also use stop-loss orders to limit potential losses if the trend reverses.

Trend following can be a viable trading strategy for traders who are looking to take a more passive approach to trading.

It allows traders to potentially profit from both long-term and short-term trends in the market.

How to Find Good Internet while Travelling

Finding good internet while traveling can be a challenge, especially if you’re in a country or region with limited or unreliable internet access. Here are a few tips to help you find good internet while traveling:

  1. Research ahead of time: Before you leave, research the internet access and connectivity in the places you’ll be visiting. Look for reviews or ask locals for recommendations.
  2. Use a SIM card: Many countries offer prepaid SIM cards with data plans that you can use on your phone or tablet. This can be a convenient and cost-effective way to stay connected.
  3. Consider using a personal hotspot: A personal hotspot is a small device that creates a wireless internet connection for your devices. You can use it with a SIM card or connect it to a wired internet connection.
  4. Look for wifi hotspots: Many restaurants, cafes, and other public places offer free wifi for customers. Look for these hotspots and connect to them when you can.
  5. Use a VPN: As mentioned above, a virtual private network (VPN) encrypts your internet connection and can help you access websites that might be blocked in the country you’re visiting.

By following these tips, you should be able to find good internet while traveling and stay connected while on the go.

Concluding Thoughts

Overall, trading while travelling requires careful planning and the use of tools and strategies to help manage risk and stay connected to the market.

By following the tips above, you can continue to trade effectively while on the go.

Now that I have shared all about trading while travelling, is this something that you would consider trying out?

Which is your favourite trading/travelling tip, and do you have any of your own to share?

Let me know in the comments below.

 

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