The One Asset Class That Holds Up With Inflation
The correlation between annual inflation and real asset returns is shown in the chart below for the period 1900 to 2022 (note that the commencement periods for gold, commercial real estate, and inflation-protected bonds are later).
Unsurprisingly, the three main asset classes—bonds, equities, and real estate—usually experience declines.
Commodities have demonstrated the ability to act as a hedge against rising prices.
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Disclaimer: These illustrations are not a solicitation to buy or sell any ETF. I am not an investment advisor/broker
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