Normal
How didn’t it reflect that, My point was that there is underlying assets in shares that provide an inflation hedge, and I gave one example of a mining company’s assets.Obviously I can’t go through the entire asx 300 index and explain how all the different companies assets are inflation hedged, so I thought giving one example would allow people to see what I meant, and they could use their own thinking cap to over lay the concept onto the other companiesBut, I could have mentioned how the price of Avocardos and the land the grow on will rise with inflation over time and provide the inflation hedge.Or, the price of pizza will rise and provide a hedge for dominos.Or, the price of groceries will rise and provide a hedge for Woolies.Or, the rental return on most reits etc etc.The point is simple, real assets have inflation hedges built in, cash deposits require you to add back some of the interest into the principle so the sticker price return isn’t your real return.
How didn’t it reflect that, My point was that there is underlying assets in shares that provide an inflation hedge, and I gave one example of a mining company’s assets.
Obviously I can’t go through the entire asx 300 index and explain how all the different companies assets are inflation hedged, so I thought giving one example would allow people to see what I meant, and they could use their own thinking cap to over lay the concept onto the other companies
But, I could have mentioned how the price of Avocardos and the land the grow on will rise with inflation over time and provide the inflation hedge.
Or, the price of pizza will rise and provide a hedge for dominos.
Or, the price of groceries will rise and provide a hedge for Woolies.
Or, the rental return on most reits etc etc.
The point is simple, real assets have inflation hedges built in, cash deposits require you to add back some of the interest into the principle so the sticker price return isn’t your real return.
Hello and welcome to Aussie Stock Forums!
To gain full access you must register. Registration is free and takes only a few seconds to complete.
Already a member? Log in here.