3 ms·

Perhaps I'm deeply misinformed, but as a hedge against a modest amount of regular inflation, stocks generally perform quite well over the long term - especially

• milesvp 6y ago
  You’re not misinformed. This is kind of a weird thread. Generally, if you want to hedge against inflation, you buy anything but dollars. If you want a very safe hedge against inflation you buy US government bonds. They are considered the lowest default bond, and as such will generally be priced at expected inflation. Next up, if you want about 1% above inflation (and the associated risk) you go with corporate bonds. And if you want about 3%, and more risk, you go with stocks. Generally you should know the higher the interest the greater the risk. Some of the risk is short term risk, like not being able to liquidate. Some of the risk is longer term, like a company becoming insolvent. To get good returns from the stock market, you need diversity, and long time lines, and growing companies. Else luck.