May's winning and losing investments against inflation have been revealed

The Turkish Statistical Institute (TÜİK) has shared with the public the real return rates of financial investment instruments for May 2026, which markets were eagerly awaiting. The data, which clearly reveals the erosive effect of inflation on investments, showed that traditional safe havens such as foreign currency and gold caused real losses for investors in May. The shining stars of May were Turkish lira deposit interest and the stock market (BIST 100). According to the analyses of experienced economic editors, while the market rewarded staying in cash and stock market risk in May, the horizontal trend in exchange rates and the pullback in global gold prices negatively affected the portfolios of domestic investors.

ESCAPE RAMP FROM INFLATION: THE LEADERSHIP SEAT BELONGS TO TL DEPOSITS AND THE STOCK MARKET

According to the monthly data announced by TÜİK, the highest real return in May was realized in gross deposit interest. When investment instruments were deflated by producer and consumer price indices, deposit interest provided a net real return of 0.35 percent when deflated by the D-PPI and 1.38 percent when deflated by the CPI.

Those who preferred to stay in the stock market during the same period also managed to protect their money against inflation. The BIST 100 index offered its investors a real gain of 0.31 percent on a D-PPI basis and 1.34 percent on a CPI basis.

THE TIDE HAS TURNED IN SAFE HAVENS: FOREIGN CURRENCY AND GOLD MELTED

In May, exchange rates and bullion gold eroded the purchasing power of their investors against inflation. When deflated by the D-PPI, the euro caused a loss of 1.23 percent, the US dollar 1.24 percent, Government Domestic Debt Securities (GDDS) 1.60 percent, and bullion gold 3.78 percent.

The negative picture did not change when viewed with CPI data. According to consumer prices, the euro caused a loss of 0.22 percent, the US dollar 0.33 percent, GDDS 0.59 percent, and bullion gold 2.79 percent for investors.

BALANCES UPSET AS MATURITY LENGTHENS: THREE AND SIX-MONTH PERFORMANCES

When looking at a wider time frame, the stable gain of deposit interest stands out in the three-month evaluation. Deposit interest (gross) topped the list with a gain of 0.61 percent when deflated by the D-PPI and 1.01 percent when deflated by the CPI over the three-month period. During this period, those who held bullion gold suffered the biggest blow, with a loss of 14.86 percent in D-PPI and 14.53 percent in CPI.

In the six-month maturity, stock market investors moved far ahead. The BIST 100 index was the highest-earning instrument in the six-month period with a real return of 15.37 percent when deflated by the D-PPI and 12.67 percent when deflated by the CPI. The biggest loser of the six months was the US Dollar, which melted by 6.49 percent in D-PPI and 8.68 percent in CPI.

THE UNCHANGING CHAMPION OF THE ANNUAL MARATHON: GOLD IS AT THE TOP AGAIN

Despite short-term fluctuations, the leadership seat did not change in the long-term (annual) evaluation. Bullion gold provided the highest real return to its investors in the last year. Gold successfully completed its mission of protecting long-term investors against inflation by offering a net gain of 26.18 percent when deflated by the D-PPI and 22.68 percent when deflated by the CPI.

On an annual basis, the stock market, bonds, and deposits were also in the winners' club. While the BIST 100 index provided a return of 19.11 percent, GDDS 7.00 percent, and deposit interest 2.90 percent on a D-PPI basis; on a CPI basis, the BIST 100 recorded a real gain of 15.81 percent, GDDS 4.03 percent, and deposit interest 0.05 percent.

THE BIGGEST BLOW ON AN ANNUAL BASIS CAME TO FOREIGN CURRENCY INVESTORS

When annual performances are examined, it is seen that those who invested in foreign currency faced a serious real loss. When deflated by the D-PPI, the euro caused a loss of 5.91 percent and the US dollar 9.18 percent on an annual basis. When viewed on a CPI basis, the loss deepened further, recorded as 8.52 percent for the euro and 11.70 percent for the US dollar. This data clearly revealed that those who waited in foreign currency over the last year lost approximately one-tenth of their purchasing power.

News Source: 12punto