For months, we’ve watched as the war between Russia and Ukraine has upended the accord of eastern European power politics. The fallout has had global effects in terms of oil scarcity, supply chain disruptions, and now the World Bank is predicting a catastrophic price shock.

In a new estimate, the bank says that all the disorder caused by the conflict would contribute to huge price increases for goods like gas, wheat, and cotton.

Peter Nagle, a senior World Bank economist and co-author of the report, says the increase in prices, “is starting to have very large economic and humanitarian effects.”

“We’re particularly worried about the poorest households since they spend a larger share of income on food and energy, so they’re particularly vulnerable to this price spike,” Nagle said.

The World Bank currently estimates increases in energy prices up to 50% which will in turn cause massive inflation across the entire spectrum of household staples like food, clothing, etc.

Of course, the largest spike will come from natural gas. And while we reported increases in this area may peak in April, many estimate that crude oil will remain at least 15% higher from here out.

From BBC:

Russia produces about 11% of the world’s oil, the third biggest share, but the report said “disruptions resulting from the war are expected to having a lasting negative effect” as sanctions mean that foreign companies leave and access to technology is reduced.

Russia currently provides 40% of the EU’s gas and 27% of its oil, but European governments are moving to wean their countries off of supplies from Russia. That has helped push up global prices by creating more demand for supplies from elsewhere.

Sadly, it’s not just Europe having to contend with these huge inflation metrics. Here in America, gasoline is averaging over $4 a gallon and the trickle-down effect is causing an uptick in costs across the board.

Of course, as the CPI hits all-time highs, our dollar is worth less and less. Now, more than ever, it’s important to put your money into assets with appreciation potential. Otherwise, we remain vulnerable to the impulses of a global economy and the inflation that comes with it.

If the World Bank holds any clout within the context of our economy here in America, I would heed these warnings and start investing wisely.

Other Non-REIT News to Know About

Fake Meat & McDonald’s: The Perfect Partnership

On the lighter side of things, Beyond Meat enjoyed a surge in its share price after rumors of a permanent partnership with Mcdonald’s made the rounds.

Speaking at Fast Company’s Most Innovative Companies Summit, McDonald’s Global Chief Marketing Officer, Morgan Flatley, claimed that the customer dining experience will “dramatically change” in the coming years, and will probably comprise “very established products” with Beyond Meat that stem from the “McPlant” partnership.

Beyond Meat (BYND) finished 7.6% higher yesterday at $38.22, after climbing up to 21% earlier in the day.

So, it seems the sway of the world’s most significant fast-food source is far from fading. This, even after the super-sized corporation’s own stock slid nearly five percent in the past week. All hail the Hamburglar.

The World According to REITs

Two REITs to Kill Inflation

In our world of record inflation, an old real estate adage rings truer than ever. “You simply cannot create more land.”

Yes, one of the best deflationary assets of all time is real estate but sadly many investors have a hard time getting their hands on much outside of homeownership. This is where REITs come in.

As we experience the worst inflation conditions since the 1980s, the value of REITs is only going to increase because they are one of the best hedges against inflation anyone can have. Other factors like record-low mortgage interest and higher rent prices are making REITs more attractive every day.

Here, I want to outline a couple of REIT picks that could insulate your portfolio from both the influence of inflation and its effects on the stock market. 

Let’s take a look:

Global Medical REIT (GMRE)

Global Medical REIT is a net-lease medical office REIT that acquires purpose-built healthcare facilities and leases those facilities to strong healthcare systems. With a 5.58% distribution, this company delivers smart, risk-adjusted returns by investing in an industry that really isn’t going anywhere. I picked them for a couple of reasons but mainly because they’ve got solid fundamentals and seem to be growing rapidly with nearly 4.5 million leasable square feet and a market capitalization of $1.2B.

Honestly, I think these guys are just in the early era of what will be a much bigger picture.

W.P. Carey (WPC)

W.P. Carey invests in properties leased to single tenants via NNN leases. As one of the highest-yielding REITs on the market, WPC boasts one of the largest diversified net lease portfolios in the game. They have over 45 years in the industry and are pioneers in the leaseback space.

For these reasons, they’re a favorite of mine for not only great long-term investment potential but as a killer inflation insulation tool as well. Get some!