Are equities an inflation hedge?

M

Maverick2608

"The big reason equities worked as an inflation hedge in the 1970s was because the Fed allowed it to. If the Arthur Burns-led Fed had jacked up rates as much as Paul Volcker eventually did, equities would have suffered -- just as they did under Volcker’s onslaught. If you buy into the market right before the Fed jams on the brakes and the economy tips into recession, expect to feel pain. And also expect it to take a long time to recover losses."
https://www.bloomberg.com/news/newsletters/2022-03-29/your-equities-inflation-hedge-is-in-trouble
 
The best hedge against inflation is ones wisdom,
insight and ability to short the market and
ride the bear until things change.
 
Depends on the equity.
Something pople need is likely to keep pace with inflation.
Something people want, maybe not so much.
 
Make more money in the market to beat inflation, not just to simply beat inflation...but enough to buy a house, two cars, two Calico cats and a watch that cost $400K. and live happily ever after in Seattle and eat Alaskan King salmon and King Crab legs and clam seafood chowder.
 
Are equities an inflation hedge?

-Depends on the equity. Not all equities are created the same. I find equities overall go down as a whole when inflation is high.
 
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