By: Kenny Soejatman

“Stagflation” might sound like a complicated economic term, but in fact it is about something very close to our daily lives — high inflation that is not accompanied by economic growth, and the need for the right investment strategy to profit.

That morning, Sinta and Mia were sitting at their favorite café. The steam from the coffee was still rising as their conversation shifted to a slightly more serious topic. Sinta began to complain. Because her husband’s factory orders in Semarang were slowing down, their Christmas hunting trip to South Africa on Emirates (First Class) would likely have to be postponed. Maybe to next year. Or forever?

Sinta: At least you have a wealthy husband. People are struggling — the prices of necessities keep rising, salaries are stuck, and layoffs are threatening everywhere. This looks like the early signs of stagflation; inflation remains high even though the economy is weakening. Investing in a situation like this needs a special strategy, right? What do you think?

Mia: So, what about stocks? I read on X/Twitter that in other countries’ experiences, during stagflation, they focus on assets that can withstand high inflation and slow growth. That way, they can still make a profit and return cash to investors through dividends.

Sinta: What stocks do you have in your portfolio? I bet you’re into producers of essentials like food, hygiene, toiletries — people need them regardless, so demand is stable.

Mia: Don’t forget energy and commodities producers. When energy prices spike, profits go up. Commodities usually benefit from higher prices and global scarcity.

Sinta: And utilities and infrastructure. They have stable cash flows, and their prices are tied to inflation, like electricity tariffs.

Mia: Real estate too — rental values rise with inflation, especially if supply is limited.

Sinta: Healthcare services are also inelastic, demand stays high even as prices rise.

Mia: Yup, historically these sectors have performed well. But you still need to diversify and consult a professional according to your risk tolerance. I’m not a financial advisor, but I think our portfolio looks good.

Sinta: Haha, true. I still feel the economy is doing okay. If you invest wisely, you can stay optimistic no matter what happens.

Mia: I’m sure the government has its own playbook to shield our economy from this global storm.

Sinta: Well, let’s wait and see.

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MOSAIC: A Smarter Investment Service

Sinta smiled. “By the way, I’ve been using an investment service from Moduit called MOSAIC. The best part is, we don’t have to constantly track economic data or guess which stocks will go up in the next 12 months. There’s a Strategic Portfolio Manager whose job is to manage our portfolio. Unlike picking stocks on your own or using a regular mutual fund, all we have to do is click ‘approve’ whenever our Portfolio Manager sends a transaction recommendation.”

Mia’s eyes lit up. “Seriously, no need to read financial reports or company news? I want to try that too! That way, our strategy isn’t just based on gut feeling, but on solid data and analysis.” With MOSAIC, both beginner and experienced investors can sit back while sipping coffee, enjoy life, and still find investment opportunities — even profiting from the economic storm.

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