Best Investments During Inflation According to Financial Experts
If inflation is eating into your savings, you are not alone. The best investments during inflation according to financial experts are not the same ones that work in a calm, stable economy. When prices rise and money loses its buying power, your investment strategy needs to change — fast.
The good news? Experts from J.P. Morgan, Goldman Sachs, BlackRock, and Morningstar have clear guidance on exactly where to put your money. This article breaks it all down in simple terms so you can protect what you have worked hard to build.
Why Inflation Hurts Your Money
Inflation means your money buys less over time. If your savings earn 2% interest but inflation runs at 4%, you are actually losing purchasing power every year — even while your account balance grows.
That is why sitting on cash or keeping all your money in a regular savings account during high inflation is one of the riskiest things you can do.
The right investments, however, either keep pace with inflation or actually grow faster than it.
Best Investments During Inflation According to Financial Experts
Here are the top expert-recommended choices, backed by the latest data and analysis from major financial institutions.
1. Gold — The Classic Inflation Shield
Gold has long been the go-to safe-haven asset during times of rising prices and economic uncertainty.
In 2026, gold has been the best-performing major asset class over the past two years, nearly doubling the returns of the S&P 500 over the trailing twelve months. Gold surged above $5,000 per ounce, reaching an intraday high of $5,595 on January 29, 2026, driven by geopolitical tensions, central bank buying, and a weakening U.S. dollar.
J.P. Morgan Global Research is forecasting gold to average around $5,055 per ounce by the final quarter of 2026, with prices potentially rising toward $5,400 per ounce by the end of 2027. Central banks globally purchased around 755 tonnes of gold in 2026 — still well above pre-2022 averages — as countries diversify away from U.S. dollar reserves.
Gold works as an inflation hedge because its supply is finite. Unlike paper money, no government can simply “print” more gold. When currencies lose value, gold typically rises.
The one downside: gold pays no income — no dividends, no interest. It is purely a store of value. Experts recommend keeping gold as a portion of your portfolio, not your entire strategy.
2. Treasury Inflation-Protected Securities (TIPS)
TIPS are government bonds that financial experts consistently recommend as one of the most reliable inflation hedges available.
What makes TIPS special is that their principal value automatically adjusts with inflation. When inflation rises, the value of your TIPS bond goes up — and so does the interest you earn. At maturity, you receive either the adjusted principal or the original principal, whichever is greater.
TIPS are issued in 5-, 10-, and 30-year maturities. Morningstar analysts highlight TIPS funds as a direct and straightforward hedge against rising inflation, noting that their values adjust up and down as inflation moves.
Goldman Sachs, in its latest quarterly outlook, also recommends short-duration fixed income to reduce interest rate sensitivity — and TIPS fit squarely into that recommendation for investors seeking inflation protection within their bond allocation.
3. Series I Savings Bonds (I Bonds)
I Bonds, issued directly by the U.S. Treasury Department, are perhaps the most inflation-proof investment for everyday investors.
Their yield combines a fixed rate with an inflation-adjusted component that updates every six months. I Bonds issued from November 2025 through April 2026 carry a fixed rate of 0.90% and an inflation adjustment of 3.12%, for a total composite yield of 4.03%.
Because the inflation-adjusted portion resets automatically twice a year, your returns move in lockstep with rising prices. Morningstar describes I Bonds as an attractive option for a direct hedge against inflation.
The main limitation: you can only purchase $10,000 worth of I Bonds per year per person. For larger portfolios, this cap limits how much protection I Bonds can provide on their own.
4. Real Estate and REITs
Real estate has historically held up very well during inflationary periods, and 2026 is proving no different.
As construction and land costs rise, the replacement value of existing buildings climbs — naturally pushing property prices higher. Landlords can also increase rents to keep pace with the Consumer Price Index, ensuring that rental income maintains its real purchasing power.
If you own property with a fixed-rate mortgage, inflation actually works in your favour. As the currency loses value, the real burden of your mortgage decreases while your property’s value rises.
For investors who do not want to own physical property, Real Estate Investment Trusts (REITs) offer a practical alternative. Net lease REITs in particular provide excellent inflation protection through built-in rent increases tied to the CPI.
Research from Quay Global Investors shows that real estate outperforms gold during periods of inflation below 6-8%. Above that level, gold tends to take the lead. Hartford Funds’ research confirms that equity REITs are among the equity sectors best positioned to benefit in inflationary environments.
Morningstar’s senior analyst Christine Benz recommends that younger investors maintain solid stock and real estate exposure for long-term inflation protection.
5. Energy Stocks and Commodities
When inflation spikes, energy prices typically rise first — and energy stocks often move with them.
Hartford Funds research identifies the energy sector as one of the equity categories most likely to benefit from high inflation, because energy companies can pass rising costs directly to consumers through higher prices at the pump, higher utility bills, and higher industrial energy costs.
Commodity investments also rise naturally during inflation. Commodities prices — from oil and natural gas to agricultural goods and metals — make up a significant part of how inflation is measured. When prices go up broadly, commodity-linked investments often outperform.
You can access commodities through ETFs like DBC (broad commodity exposure) or PDBC (actively managed), which track energy, metals, and agricultural prices without requiring futures contracts directly. Morningstar’s senior principal Russ Kinnel recommends keeping commodity fund positions relatively small given their volatility.
6. Short-Term Bonds
Not all bonds are equal during inflation. Long-term bonds suffer the most when inflation pushes interest rates higher, because their fixed payments become less valuable in real terms.
Short-term bonds, however, are far more resilient. As of March 2026, the one-year Treasury yield stood at around 3.55%. When a bond is already close to maturity, rising interest rates have far less impact on its market value.
Multiple CFPs interviewed by CNBC recommend staying with short- to intermediate-term bonds and avoiding long-term fixed income during inflationary periods. As short-term bonds mature, you can reinvest the money at newer, higher interest rates — turning rising rates into an advantage.
Goldman Sachs specifically recommends flexible bond strategies with dynamic duration as the best fixed-income positioning in today’s uncertain environment.
7. High-Quality Dividend Stocks
Not all stocks perform well during inflation — but high-quality, dividend-paying companies in sectors like consumer staples, healthcare, and energy tend to hold up better than most.
BlackRock’s 2026 investment outlook highlights the importance of owning “durable income and strong balance sheets” — characteristics found in well-established dividend-paying companies. These businesses tend to have strong pricing power, meaning they can raise their prices to consumers without losing significant demand.
Consumer staples companies — the ones that sell everyday essentials like food, cleaning products, and personal care items — are particularly well suited to inflationary environments because people keep buying their products regardless of price.
Hartford Funds research confirms that equities outperform inflation 90% of the time when inflation is moderate and rising. However, when inflation is high and rising, equities become less reliable. That is why stock selection — focusing on quality and pricing power — matters so much.
8. High-Yield Savings Accounts and CDs
For money you need to keep safe and accessible, financial experts recommend high-yield savings accounts (HYSAs) and certificates of deposit (CDs).
A high-yield savings account is the right home for your emergency fund and short-term savings. These accounts are FDIC insured and currently offer significantly better interest rates than traditional savings accounts. Cash expert Anna N’Jie-Konte, CFP, recommends keeping six to nine months of expenses in a high-yield savings account for single-income households.
CDs lock your money away for a set term — from a few months to several years — in exchange for a fixed interest rate. A popular strategy called a “CD ladder” involves splitting your money across CDs with staggered maturity dates. This gives you the benefits of higher CD rates while keeping a portion of your money accessible at regular intervals.
What Financial Experts Say About Building a Balanced Portfolio
No single investment is the perfect solution on its own. The experts are unanimous on one point: diversification is the most powerful tool any investor has during inflation.
BlackRock’s 2026 investment outlook puts it clearly — the opportunity now belongs to those who focus on selectivity, patience, and discipline. In an environment where inflation is persistent and market risks are rising, owning a mix of inflation-linked assets, quality equities, and real assets is far stronger than concentrating in any one category.
Goldman Sachs recommends that investors prioritise hedges against stagflationary risks right now. That means holding a combination of short-duration bonds, high-dividend equities, liquid alternatives, and commodities — rather than betting everything on a single asset class.
Ivory Johnson, CFP and founder of Delancey Wealth Management, summed it up plainly for CNBC: “Gas isn’t getting better — your money is just getting worse.” The answer is not to panic, but to be deliberate and intentional about where your money works for you.
Today’s Inflation Outlook and What It Means for Investors
In 2026, the global inflation picture remains complicated. Geopolitical tensions — particularly the ongoing Strait of Hormuz crisis — have pushed energy prices sharply higher, adding new pressure to inflation globally.
The IEA and EIA have both warned that energy markets will remain undersupplied through at least October 2026, keeping upward pressure on oil and gas prices. Higher energy costs feed into almost every product and service in the economy — from food to transportation to manufacturing.
Goldman Sachs’ Q2 2026 market outlook acknowledges that inflation may normalize slower than expected, and that central banks could tilt more hawkish in response. In that environment, inflation-linked assets — gold, TIPS, I Bonds, and real assets — deserve a meaningful place in most portfolios.
Practical Next Steps for Investors
Here is a simple, action-oriented summary based on what the experts recommend:
If you want maximum inflation protection with no market risk — look at I Bonds and TIPS first. They are government-backed and designed specifically for this purpose.
If you want long-term wealth growth with inflation protection — real estate and high-quality dividend stocks are your best tools. REITs make real estate accessible without the need to buy a property directly.
If you want to hedge against extreme economic shocks — gold deserves a position in your portfolio. Experts generally suggest keeping it between 5% and 15% of total holdings.
If you need accessible, safe cash — move your emergency fund into a high-yield savings account and consider a CD ladder for money you will not need immediately.
If you are comfortable with some risk — a small position in energy stocks or commodity ETFs can add meaningful inflation protection without taking on excessive volatility.
Above all, do not let inflation erode your savings by doing nothing. A thoughtful, diversified strategy is the most powerful response to rising prices.
Financial experts consistently recommend gold, Treasury Inflation-Protected Securities (TIPS), Series I Savings Bonds, real estate and REITs, short-term bonds, energy stocks, commodities, and high-yield savings accounts as the best investments during inflation. The key is diversification — no single asset does everything, but combining several of these creates strong protection against rising prices.
Yes. Gold has been the best-performing major asset class over the past two years. In 2026, gold surged above $5,000 per ounce and hit an intraday high of $5,595 in January 2026. J.P. Morgan forecasts gold averaging $5,055 per ounce by Q4 2026. Gold works as an inflation hedge because its supply is finite — no government can print more of it.
TIPS (Treasury Inflation-Protected Securities) are U.S. government bonds whose principal value automatically rises with inflation. When inflation goes up, so does your bond’s value and your interest payments. They are issued in 5-, 10-, and 30-year maturities and are widely recommended by Morningstar and Goldman Sachs as a reliable, direct inflation hedge for conservative investors.
Yes, for most everyday investors, I Bonds remain one of the safest inflation hedges available. I Bonds issued from November 2025 through April 2026 offer a composite yield of 4.03%, combining a fixed rate of 0.90% and an inflation adjustment of 3.12%. The main drawback is the $10,000 annual purchase limit per person.
Yes. Real estate is one of the most effective long-term inflation hedges. As inflation rises, property values and rents tend to increase together. Research shows that real estate outperforms gold in periods of inflation below 6–8%. REITs (Real Estate Investment Trusts) make it easy to invest in real estate without buying physical property, and net lease REITs offer built-in rent increases tied to the Consumer Price Index.
It depends on the type of stock. Equities outperform inflation 90% of the time when inflation is moderate and rising, according to Hartford Funds research. However, when inflation is high and rising, stock performance becomes unpredictable. Experts recommend focusing on high-quality dividend stocks in sectors like consumer staples, healthcare, and energy — companies with strong pricing power that can pass rising costs on to customers.
Long-term, fixed-rate bonds are generally the worst investment during high inflation. When inflation pushes interest rates higher, the fixed payments from long-term bonds become worth less in real terms, and their market value drops. Cash sitting in a regular savings account is also problematic, as it typically earns less than the inflation rate, quietly eroding your purchasing power over time.
