Sentences with phrase «poor inflation hedge»

That brings us to the second argument for why stocks are a poor inflation hedge: people confuse long - term stock returns with hedging.

Across all the regions examined, stock inflation betas could reasonably range from 1 (a great inflation hedge) to -2.5 (a poor inflation hedge).

This brings us to the third and last argument: academic research established long ago that stocks are a poor inflation hedge.

It seems that a closer examination of both stock returns and inflation in the 1960s could clarify whether this weird time in U.S. history proves that stocks are a poor inflation hedge in general.

The Bekaert and Wang study concludes that broad swaths of stocks are often a poor inflation hedge relative to other assets, which is generally consistent with most of the other academic papers I found.

However, as I mentioned in my last post, the use of real returns in the Credit Suisse report biases their analysis toward a conclusion that all assets are poor inflation hedge.

Using the Bekaert and Wang hedge definition, assets with negative betas are poor inflation hedges.

Not exact matches

Gold advocates consider the metal a good hedge against inflation and against poor financial management by governments that control paper currencies like the U.S. dollar or the euro.

I was pretty confident with my conclusions until I came across several articles that claim stocks are, in fact, a poor hedge against inflation.