32 days ago • Posted by Charles-Henry Monchau

The high cost of inflation hedges

Total returns for “inflation” and “deflation” indices since 1974 shows that an "inflation hedge basket" (commodities, gold, global value, EU equities) massively underperformed a "deflation basket" (IG corporate bonds, Treasuries, US growth stocks, S&P 500) - source: BofA 

Deflation hedge basket vs. Inflation hedge basket
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