Stocks Are the Best Asset Class to Hedge Against Inflation

John ratanti: I'm not smart enough to a have an opinion with any degree of conviction whether the higher inflation that we are seeing right now is sustainable or not. But stocks have historically been the best asset class to hedge against inflation, if hedging is the word tha we want to use. Over long periods time, stocks provide seven % real return, so that means real meaning, above inflation. The stock market has returned abo nine to ten % before inflation, and then about seven % after inflation.