6. Commodities as inflation Hedge

Are There Better Inflation Hedges?

There’s a tendency to recognize inflation only during those times when it reaches uncomfortable levels. But in truth, there is inflation all the time and commodities don’t always react to it. The best strategy to brace yourself for inflation may be a combination of a small position in commodities – for those times when inflation is on a tear – and other assets that react better to the slow, gradual type of inflation that is so much more common.

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