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Which Inflation Protection Strategies Worked and Which Didn't?

Money For the Rest of Us

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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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