Inflation: This is how investors should react to a rising inflation rate

Which stocks are worthwhile in the context of inflation?

But what about the stock market? How does rising inflation affect stocks and dividends? Every development on the market is associated with opportunities and risks, so with the right funds and shares you can protect your invested assets even in times of inflation, if not even make a profit. This depends, among other things, on whether you decide to invest in a sector with stable value. Of course, not every type of asset offers protection against inflation.

It is therefore worthwhile if you set up a broad but specially selected portfolio. This applies to both investing in shares and ETFs. Here it is important to distribute the capital over permanent investments, as they are more able to cope with the uncertain price development than, for example, hyped start-ups. In particular, because growth companies still need a lot of capital, the interest on which will be raised by rising inflation. Likewise, as an investor, you should avoid cyclically sensitive companies and instead focus on large consumer goods groups. Thanks to their market power, the latter are able to pass inflation on to customers in the form of price increases. In this way, the profit margins are safer than in other industries.

Tip: In our guide article on the subject of changing securities accounts, you will find out everything you need to know about your options.