What to invest in when inflation strikes

Until the Stock Exchange’s rebound occurs, expected for the
last quarter of the year, analysts continue to recommend
investments in gold and in foreign currencies as a shield from
inflation over the next six months. “Even though the Romanian
market does not provide enough investment opportunities, this is
not a time when investors hold cash, especially because of
inflation. One solution would be to exchange cash for dollars,”
says Mukul Pal, chief executive of investment advisory Orpheus
Capitals. In the first six months of the year deposits in dollars
fetched 22% earnings. This compares with around 5% earnings on
average for those who bet on deposits in euros or in RON. Gold was
however king, with a 35% yield, but analysts say corrections may
come up, as well. On the Stock Exchange only half the shares rose
in the first six months of the year, while the other half saw
declines.