Protect your capital from inflation in the U.S. this 2023
Currently, one of the most attractive options to invest and protect capital from inflation is in the United States of America, due to the strength of the dollar against other types of currencies, the constant rise in the surplus value of land, Between other reasons.
Inflation is not a new phenomenon, and it has been affecting the economic life of man for more than half a century. The existence of inflation has been fueled by many factors, such as periods of major wars or natural conditions that pushed up crop prices.
However, in the last 10 years there has been a significant change in our lives. Extreme inflation rates have affected countries all over the world, regardless of their geographical position or cultural level. This is due to the increasing impact of globalization on our lives and the excessive printing of money by central banks around the world.
In this context, inflation is one of the most important macroeconomic variables globally. It is an economic phenomenon for which prices vary greatly. It can affect economic and financial results, especially in countries where this variable is high.
What to do to avoid capital impairment
In short, the main reason for inflation is a significant increase in the general supply of goods and services. This indicates that there are people who want to buy more goods and services but do not have enough money to buy them. Causing an increase in the prices of goods and services, as market forces work to meet demand, but with a limited money supply.
With the inflation that characterizes the world today, it is important to protect capital and assets so that they do not lose their value. In that sense, there are some currencies that seem immune to inflation. Among them is the US dollar, which is one of the strongest currencies in the world today and has been gaining strength in recent months.
In fact, it has even surpassed its all-time highs of previous years and has reached levels not seen since 2011. The best way to do this is by investing in assets that will appreciate over time.
Having said this, we can affirm that the best option today is to invest in the United States, where an appreciation of the dollar is expected in the near future as a result of high interest rates and strong economic growth.
Why invest in the United States?
The US economy has been growing steadily for decades, with low unemployment and high productivity. As a consequence, the dollar has strengthened against other world currencies. This makes investing in US assets attractive because they will have higher returns than those offered by other countries or other asset classes, such as stocks or bonds.
What are some of the advantages of investing in US dollars?
Investing in dollars has several advantages:
Dollar Appreciation: The dollar has gained strength against other currencies since 2017 due to growth expectations and interest rates that remain at historically high levels. This means that if you invest your money today, it will be worth more tomorrow because of the expected appreciation over time.
The world is going through a period of high inflation. This is due to the fact that many countries around the world are experiencing economic growth, which in turn means that their currencies are getting more expensive.
The United States is one of the few countries where there are no restrictions on investing capital abroad (unlike Spain), so you can invest freely with no restrictions or tax implications (although taxes may apply depending on how much.
Investing in BAI Capital is investing in the United States
With a presence in the real estate sector in the states of Florida, Texas and New York, BAI Capital specializes in generating value from land acquisition to the development of mixed-use projects. Such as residences for the elderly, student residences, multifamily buildings for rentals and mixed use that include condos and retail.
Our mission is to safeguard the capital of the partners and the own capital under the minimum risk exposure. With a safe development and going through all the stages. Purchase of land, adjustment of urban zoning, commercial vision in architectural development and management of building permits. Then, we take charge of the capitalization, construction and exit with return of the capital and profits to the partners.
In this way, we guarantee fixed and stable returns for our client portfolio. In addition to having a confidential work protocol with encrypted web forms. Use of protected personal data and private meetings with our agents throughout Latin America.