Inflation hedge

An inflation hedge is an investment or asset that is expected to maintain or increase its value over time, even as inflation rises. Inflation reduces the purchasing power of money, meaning you can buy less with the same amount. Common inflation hedges include real estate, stocks, and commodities like gold. When inflation occurs, these investments often increase in value or provide returns that outpace inflation, helping to protect your wealth. Essentially, they serve as a safeguard against the rising costs of goods and services, ensuring that your financial resources remain strong over time.