Inflation Hedge
Risk Management
Definition
Investments that tend to maintain or increase their value during periods of rising inflation, protecting purchasing power when currency values decline due to inflationary pressures.
Key Points
- Protects against currency devaluation
- Includes real assets like commodities
- TIPS bonds provide direct inflation protection
Examples
Gold and commodities during 1970s inflationReal estate and TIPS as hedgesQuick Info
Category
Risk Management
Related Topics
commodity correlation
real assets
purchasing power
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