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In a surprising shift, inflation cooled in June, according to new data released Tuesday by the Bureau of Labor Statistics (1). The latest numbers signal the largest monthly decline in consumer prices since the early months of the COVID-19 pandemic, bringing some relief to Americans after months of rising costs.
Specifically, the Consumer Price Index (CPI) fell 0.4% last month, the largest monthly decline since April 2020.
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Annual inflation also slowed sharply to 3.5%, down from 4.2% in May.
The biggest driver was energy. This index dropped 5.7% during the month, while gasoline prices plunged 9.7%, exceeding continued increases in categories such as food and shelter.
Meanwhile, so-called core inflation, which strips out volatile food and energy prices, was unchanged in June and eased to 2.6% annually, suggesting underlying price pressures also moderated.
But savvy investors shouldn’t assume inflation has been beaten.
June’s report largely reflects energy prices before oil surged again amid renewed fighting involving Iran. Crude prices have climbed in recent weeks, raising concerns that higher fuel costs could creep back into inflation in the months ahead.
In short, while June’s rate is a breath of fresh air, we aren’t out of the woods yet. And given that the on-again-off-again war with Iran is back in force (2), one could expect history to repeat itself.
Build wealth based on timelines, not headlines
Inflation reports often move markets (3) because they influence expectations around interest rates, borrowing costs and economic growth. But reacting to every monthly data release can be a costly mistake.
Instead of trying to predict where inflation will go next, many successful investors focus on maintaining a diversified portfolio and investing consistently through changing market conditions.
If you’re looking to cut through the daily noise, Moby offers expert research and recommendations that help you identify strong, long-term investments.
Backed by advice from former hedge fund analysts, their track record is impressive: Over four years and nearly 400 stock picks, they’ve beaten the S&P 500 by an average of almost 12%.
Moby’s team puts in hundreds of hours sifting through financial news and data to ensure their stock and crypto reports are delivered straight to you. Their research keeps you up to the minute on market shifts, helping you reduce the guesswork in choosing stocks and ETFs.
Plus, because their reports are designed to be easy for beginners, you can become a smarter investor in just five minutes. And if you’re not sure, they even offer a 30-day money-back guarantee.
Whether inflation falls or rises over the coming months, staying invested has historically proven more effective than attempting to time economic data releases.
Still another effective strategy is to diversify ahead of time into assets that are designed to weather inflationary pressures.
Read More: Millionaires under 43 hold only 25% of their wealth in stocks. Here’s where their money is actually going
Cushion the shocks to come
While no investment is immune to market volatility, diversification can help reduce the impact of unexpected inflation or geopolitical events.
Gold has long been viewed as a potential hedge during periods of elevated inflation or global uncertainty because it has historically retained purchasing power when paper currencies weaken.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, combining the tax advantages of an IRA with the protective benefits of investing in goldmaking it an attractive option for those looking to hedge their retirement funds against economic uncertainty.
To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases.
And gold’s not the only option available to the curious investor. If you’d prefer an income-producing asset to hedge against inflation, there’s also real estate.
Hedging with real estate
Rental properties have long been a proven source of steady, passive income for high-net-worth investors.
It’s no wonder that real estate accounts for nearly 25% of the typical family office portfolio. However, the time, effort and costs involved in managing and maintaining multiple properties prevent many from investing. So unless you’re a hedge fund titan or an oil baron, you’ve typically been shut out of one of the market’s most profitable corners.
Mogul aims to bridge the gap here. This real estate investment platform offers fractional ownership in blue-chip rental propertiesproviding investors with monthly rental income, real-time appreciation, and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.
Founded by former Goldman Sachs real estate investors, the team handpicks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional-quality offerings for a fraction of the usual cost.
Each property undergoes a vetting process that requires a minimum 12% return, even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10% and 12% annually. Offerings often sell out in under three hourswith investments typically ranging between $15,000 and $40,000 per property.
Every investment is secured by real assets and is not dependent on the platform’s viability.
Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.
Getting started is quick and easy. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.
While fractional platforms like this allow you to start building your real estate footprint incrementally, if you’ve got more capital to work with, you could invest in institutional-grade assets.
Lightstone DIRECT’s direct-to-investor model ensures a high degree of alignment between individual investors and a vertically integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.
With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.
While diversification is a great strategy, it’s hardly the most important principle when it comes to growing your wealth during market downturns. Perhaps the single most important thing you can do is to stay put.
Keep investing, regardless of where inflation goes next
One inflation report doesn’t establish a trend.
Energy prices can change rapidly, geopolitical conflicts can disrupt global supply chains and central banks continue adjusting monetary policy based on incoming economic data.
That’s why many financial professionals recommend continuing to invest consistently rather than waiting for “perfect” economic conditions.
If you find it difficult to stop selling off on a reactive basis, you can start by building investing habits into your everyday spending with Acorns.
It works by automatically investing spare change from your everyday purchases into a diversified portfolio of ETFs managed by experts at leading investment firms like Vanguard and BlackRock.
For instance, if you buy a donut for $3.25, Acorns will round up the purchase to $4 and invest the change in a smart investment portfolio. So a $3.25 purchase today automatically becomes a 75-cent investment in your future.
Sign up today and get a $20 bonus investment.
Remember, the goal isn’t to predict every move in inflation — it’s to keep building wealth regardless of what the next headline says. That said, staying calm when you see your portfolio dip is easier said than done.
A financial advisor can help position your portfolio
Inflation, interest rates and geopolitical events can all affect investments differently depending on your financial goals, time horizon and risk tolerance.
If you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who can make sure your portfolio is tuned with today’s markets in mind.
Simply answer a few questions about your savings, retirement timeline and overall investment portfolio.
From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.
You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals.
WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties and specific financial results are not guaranteed.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Bureau of Labor Statistics (1); The New York Times (2); AvaTrade (3)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
