Inflation does not necessarily change investment decisions

International survey across 46 countries reveals inflation-focused behaviours of investors

Inflation does not necessarily change investment decisions
Steve Randall

Investors are split on whether they invest more or less due to inflation, but also on whether it affects their investment decisions at all.

While 21% of respondents to a recent survey said they have been investing more to try to offset the impact of inflation, 24% have reduced their investment portfolios, and 3% are currently not investing.

The survey from alternative investment platform PeerBerry also found that investments in P2P loans (29%), ETFs (20%), stocks (14%), and real estate (13%) as currently having the best risk-to-return ratio and these also scored highest for investments with the potential for returns and stability in the coming year.

Other investments’ risk-to-return ratios include bonds (7%), bank deposits (7%), precious metals (5%), and cryptocurrencies (5%).

For investing in loans, short-term loans (34%) and real estate loans (16%) were cited as likely being the most attractive in the coming year.

Profit and loss

One fifth of respondents said they had not had any losses in the past year, with a similar share reporting losses from stocks, 18% from cryptos, 15% from P2P loans, 10% from ETFs, 9% from real estate, and 5% from bonds.

Asked about the investments producing the highest profits, 21% said P2P loans (PeerBerry’s focus on this means its users are likely to be investing in this space), stocks (18%), ETFs (12%), real estate (9%), cryptos (8%), and bonds (3%).

Poll participants were divided on when inflation will return to normal with around three in ten saying 2024 and a similar share saying 2025. A more optimistic 13% believe things will stabilize this year while 27% are unsure.