Inflation refers to the continuous rise in the overall price level, which will lead to the decline in the purchasing power of money, thus affecting the wealth and income of investors. So what are the assets that hedge against inflation? How to choose? Xi Cai Jun has also prepared relevant contents for your reference.

What are the assets that hedge against inflation?

1, physical assets. Physical assets refer to those tangible assets with use value or collection value, such as gold, silver and real estate. Physical assets often have high scarcity and demand, and their prices and returns are positively related to inflation, that is, when inflation rises, their prices and returns will also rise.

2. stocks. Stock refers to the securities that represent the ownership of enterprises, such as listed company stocks and stock funds. The price and income of stocks are related to the profitability or growth potential of enterprises. In an inflationary environment, some industries or enterprises may benefit from rising prices or increasing demand, thus pushing up their share prices and earnings.

How to choose?

Investors can refer to the following aspects when choosing assets to hedge inflation:

1, inflation expectations. Inflation expectation refers to investors' prediction or judgment of future inflation level, which will affect investors' investment decisions and behaviors. Inflation expectation can be analyzed by observing some indicators or data, such as consumer price index, producer price index and money supply. For example, when inflation expectations are high, investors can choose physical assets or stocks that are positively related to the inflation level.

2. Risk preference. Risk preference refers to investors' attitudes and choices when facing risks, which will affect investors' gains and losses. Risk preference is mainly related to the age, income and investment experience of investors. For investors with high risk preference, they can choose to invest in some stock funds and commodity indexes.