Hyperinflation leads to rethink investments

Intelinvest aims for indebtedness in bolivars to acquire productive assets that guarantee long-term investment

The Venezuelan hyperinflation has changed the priorities of the investors in the country and has motivated them to look for new ways to safeguard the heritage.

Recently, the company dedicated to financial analysis and advice, Intelinvest, issued a document in which it reviews the economic context and provides guidance on a possible strategy that would safeguard investment in the short and long term.

The international firm of consultants specializing in investment strategies explains that “in an environment where prices maintain a growth rate of over 100% month-on-month, it is essential to manage the portfolios towards assets and instruments that are revalued and are fundamentally productive.”

Likewise, Intelinvest points out that in recent months “record inflation figures have been presented (April with 80.1% and the month of May over 110%) and the parallel exchange rate maintains a growth without inflection, this contrasts with the rates active banks, which have remained fixed and well below inflationary growth (currently with rates around 27% and flat 3-4%), creating negative lending rates “.

Investing in the Caracas Stock Exchange and Cryptocurrencies

Against this background, experts say that at present it has become attractive for investors to borrow in bolivars “to acquire productive assets, such as shares in the Caracas Stock Exchange and Cryptocurrencies.

The company emphasizes that this type of assets tend to be revalued over time, which allows protecting the equity with an upside, since at the expiration of the credit, the purchased will have a higher price, even “by adding the capital plus the interest paid, which are diluted throughout the term. “

Source: El Sumario

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