Harnessing Empirical Finance in Long-Term Investing Strategies with Dimensional’s Savina Rizova
Excess Returns
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Is Energy and Commodities a Good Hedge for Inflation?
Last year we already were living in a period of higher inflation so we decided that it's a good time to um upgrade some research we've conducted on inflation before. What we found is that most asset classes uh i face inflation all over the long term meaning they have positive real returns. The size value and profitability premiums are not to be reliably higher or lower in higher or lower inflation environment. We don't time kind of the pursuit of those premiums in our portfolios and stay focused on them all the every day in our craft markets but with the paper as they're highlighted is the general misconception that energy and commodities are a great hatches for inflation if you want to hatch inflation.
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