What are common mistakes people make when hedging against inflation?
Some common mistakes include not diversifying investments, relying too heavily on one asset, and ignoring market trends.
Can you explain why diversification is important in this context?
Diversification helps spread risk across different assets, reducing the impact of poor performance in any single investment.
What assets are typically considered good hedges against inflation?
Typically, real estate, commodities, and inflation-protected securities like TIPS are considered good hedges against inflation.
How can I assess if my current investments are effectively hedging against inflation?
You can assess your investments by analyzing their historical performance during inflationary periods and their correlation with inflation.
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