'The best gains': Suze Orman says this asset class has a long-term record of 'earning more than inflation' — here are 3 solid ways to hedge your portfolio this year

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As inflation pinches pocketbooks and makes it harder to cover the cost of essentials, many Americans are smartly turning to high-yield savings accounts as an effective, if conservative, way to secure and grow their money.

But just how smart is it? Personal finance expert Suze Orman has long touted this straightforward advice: Stay with stocks.

Even as the Dow, S&P 500 and Nasdaq rise and dip with anxiety-inducing volatility, Orman contends that the stock market offers a more direct path to building wealth.

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“Over the long term, stocks have produced the best gains after factoring in inflation,” Orman wrote in 2021. “Bonds and cash struggle to keep pace with inflation; only stocks have a track record of earning more than inflation.”

Does her advice hold up in 2024? Whether you want to invest in the stock market or you’re looking for stable alternatives, here are some ways you can hedge your portfolio against inflation.

1. Buy blue

Orman often assures stock skeptics that investing in the market remains the best way to deal with inflation.

With a market value of more than $10 billion, established blue-chip companies serve as a lower-risk option for investing in the stock market. Examples of blue chip stocks currently include companies once considered high-tech growth stocks, such as Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN).

Interactive Brokers offers low commissions and margin rates, along with tools to find stocks that have that intrinsic value.

The company touts the largest electronic trading platform in the U.S. by number of daily average revenue trades with access to a wide range of tradeable securities — from blue-chip stocks to crypto — across 150 global exchanges.

All you have to do is fill out their quick online application to start trading with confidence.

2. Diversify with ETFs

You’ve likely heard this term before: diversify. Even when working with a small amount of money, spread your investments over several stocks to distribute your risk and protect against big losses. Instead of individually investing in different companies, which can be daunting for beginners, consider exchange-traded funds (ETFs) or mutual funds.

Acorns — an automated investing app — makes ETFs so accessible, all you have to do is spend money on everyday purchases to start investing in them.

When you link your bank account to Acorns and spend as you normally would, the app will automatically round up the total cost of the purchases you make and invest the remainder in a diverse portfolio of ETFs.

Sign up today and get a $20 bonus to get you started.

Read more: These 5 magic money moves will boost you up America's net worth ladder in 2024 — and you can complete each step within minutes. Here's how

3. Consider private assets

While Suze Orman is a proponent of investing in the stock market for good reason, there are other ways to diversify your portfolio outside of it.

Retirement accounts

Orman is known for consistently telling her audience to put money away for retirement by contributing to a 401(k) or IRA.

A Gold IRA is one option for building up your retirement fund with an inflation-hedging asset. A gold IRA with industry leader American Hartford Gold allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of IRAs. If you’re curious whether this is the right alternative investment for you, you can order your free information guide today.

Real estate

Both residential and commercial real estate has long been a solid choice for investors looking to diversify and add stability to their portfolios.

Backed by world class investors like Jeff Bezos, Arrived makes it easy to fit rental and vacation properties into your investment portfolio regardless of your income.

Arrived’s easy-to-use platform offers SEC-qualified investments, flexible investment amounts and simplified process allows investors to take advantage of this inflation-hedging asset class without needing to purchase a home or take on the extra work of being a landlord.

Start by browsing a curated selection of homes, vetted for their appreciation and income potential. Once you find a property you like, choose the number of shares you want to buy. Then all you have to do is sign on the dotted line and begin receiving quarterly deposits from the property’s income.

If you’re an accredited investor, First National Realty Partners specializes in grocery-anchored commercial real estate properties with historically strong return potential.

FNRP has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods, and provides insights into the best properties both on and off-market.

As a private equity firm, FNRP acts as the deal leader, providing expertise, doing the legwork and streamlining the process, while investors passively collect distribution income.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.