3min chapter

Money For the Rest of Us cover image

Which Inflation Protection Strategies Worked and Which Didn't?

Money For the Rest of Us

CHAPTER

Introduction

An investment protects against inflation if it generates a return greater than inflation. Two years ago, the financial markets weren't pricing in high inflation. In order to get a five-year average inflation rate of 2.5% when you've had 14% the first two years, you basically need prices to not increase at all or even fall a little bit. That's just not going to happen.

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