Sentences with phrase «hedge against inflation because»

For example T - bills are an excellent hedge against inflation because their returns are strongly correlated.

Be clear in your mind the difference between claiming an asset is a hedge against inflation because - «its returns exceed inflation», and the claim that an asset is a hedge because - «its returns are correlated with inflation».

As a general rule, Resource stocks provide the most effective hedge against inflation because they gain directly from the rising prices of the commodities they produce.

Not exact matches

Because rental rates tend to correspond to inflation over the long term, some investors regard REITs as a hedge against inflation.

Having a portion of your portfolio in intermediate TIPs may provide an extra hedge against the risk of rapid inflation increases, exactly because such increases are currently unexpected.

To begin with, it may help for Alice to read «Risk Less and Prosper: Your Guide to Safer Investing,» by Zvi Bodie and Rachelle Taqqu, in which the authors argue for accumulating TIPS in one's portfolio, because TIPS provide inflation protection and hedge against interest rate risk.

Making things worse, commodities and inflation - protected securities, which are widely used by risk - parity managers as a hedge against inflation, also suffered heavy losses because of receding inflationary expectations.»

Resource stocks in particular will provide a hedge against inflation, because they gain directly from rising prices for the commodities they produce.

Corn has appeal as an investable asset because it can serve as a hedge against inflation brought about by increases in food prices.

These tend to pay a low return but because the inflation index is built in, they can be a good hedge or guard against high inflation.

Investing in commercial real estate in general and seniors housing in particular has the potential to act as a natural hedge against inflation, because property owners can potentially benefit from increasing rents and property values.

Guardian is betting on older buildings in urban areas and prefers apartments because demand is strong and increasing rents can provide a hedge against inflation, O'Rourke said.