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What Actually Protects Against Inflation? Discover the Effective (and Ineffective) Inflation Hedging Strategies | ET Money

No one likes high inflation. And yet, that’s what India and other countries are facing. With high and rising inflation posing a big threat to our standards of living. Now, as investors we are exposed to inflation in many ways. There are interest rate changes, consumption patterns can change overnight, growth projections might go for a toss, all of which can bring down our investment portfolios by quite a bit. Let’s start with what a good inflation hedge. Elements from “The Best Strategies for Inflationary Times”: ENERGY Energy as an asset class delivered an average of 41% returns across the 8 high inflation periods that haunted the United States from 1926 to 2020. But from the looks of it, periods of supply-driven inflation remember, not demand but supply-driven inflation seems to bring out the best from energy investments and that’s something investors might want to look out for. Having said this the energy sector does come short when it presents itself as a long term asse