Inflation hedge

An inflation hedge is an investment intended to protect the investor against—hedge—a decrease in the purchasing power of money—inflation. There is no investment known to be a successful hedge in all inflationary environments, just as there is no asset class guaranteed to increase in value in non-inflationary times. Conventional strategies for protecting wealth from inflation normally involve diversification into traditional assets like common stocks, gold, fixed-income securities, and real estate, but new strategies have value-generating assets like solar photovoltaics.

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