The last few years have been hard. The global pandemic forced us into some challenging changes. We tightened our belts, learnt to brew beer, and hoped that things would get back to normal as soon as possible. No one told us that our society would be changed forever, with no turning back to the way things were.
You’ve most likely noticed things are getting expensive. One hundred Rand used to go a lot further than it does now. Filling your tank with petrol feels like you’re being punked, and going out for dinner takes budget planning. A trolley full of groceries has never cost more than it does right now.
We’ve all heard about inflation, but few know that we are experiencing the highest inflation rate in forty years! The value of your hard-earned rands is dropping at a breathtaking pace! The record-high inflation is complicated, but the corner piece of the puzzle is money printing.
Every government worldwide has a central bank that controls the printing of that country or region’s currency. To help struggling companies and banks from closing shop during Covid, central banks printed vast amounts of money, pumping it into the economy to keep people spending and businesses earning. It worked, but all the money you have in the bank is now worth less than before Covid. Why? Well, imagine there are only 100 avos in the world. If someone finds another 100 avos, the value of the first 100 avos decreases because it’s easier to get avos now. Covid money printing dumped hundreds of avos on the market. 40% of all the dollars in existence were printed since Covid began!
Last week, the most important central bank authority in the world, the US Federal Open Market Committee, held a conference to let the world know what they’re going to do about inflation. A very soft approach followed, which included making it slightly more expensive to take out loans, known as an interest rate hike, which will decrease spending and money printing.
Jerome Powell, the US Federal Open Committee chairman, went on to say that “inflation will come down drastically in the second half of this year”. This opinion is optimistic and highly unlikely to unfold. Japan has more chance of winning the next football world cup. The takeaway from the meeting is that inflation is here to stay. Hopefully, it will begin to decrease this year, but it will be a long process. It’s a time for storing your wealth in deflationary assets that will stand up to inflation. Storing your wealth in cash reserves is not prudent.
To help you stop inflation from draining the value of your money, the team at Revix — a Cape Town based investment platform backed by JSE listed Sabvest — developed a one of a kind bundle that protects your wealth against inflation while still benefiting from the upside opportunity that cryptocurrency has to offer.
They’ve called it the Inflation Shield Bundle — an algorithmically optimised investment basket, giving you the protection of gold with the performance of Bitcoin, through a single investment. The ratio of gold to Bitcoin within the bundle is based on historic risk vs return data aimed at maximising returns while taking on the least amount of downside risk as possible.
Today the bundle is composed of 75% Pax Gold (a cryptocurrency backed by 1:1 by physical gold in London Brinks vaults) and 25% Bitcoin (digital gold for a digital world).
The Inflation Shield Bundle has outperformed both Bitcoin and gold over the last 12 months.
“This is the perfect Bundle for those investors looking to protect themselves against inflation and don’t quite have the stomach to invest in Bitcoin on its own.” — says Chris Beamish, Investment Analyst at Revix.
“The really cool part about this Bundle is that over the last year the Inflation Shield managed to beat both Gold and Bitcoin because of its monthly rebalancing. And over the last 5 years, it returned an impressive 38.83% per year. ” — Continues Chris
The Inflation Shield Bundle offers protection against rising inflation, allowing you to ride out the current market volatility while making the most of the rising gold trend before the coming interest rate hikes that global central banks will undoubtedly roll out. The inclusion of Bitcoin gives you just enough growth exposure to spring back from the dips, while the high percentage of Pax Gold anchors your investment against the money printers. The Inflation Shield Bundle is an invaluable tool to add to your portfolio, allowing you to hedge and secure value while facing curveballs.
Consistent with our dedication to maintaining open and transparent discussions about the evolving situation with Haru Invest ("Haru"), we have prepared a detailed update on the measures we've taken and expect to take in the future.