Real assets can provide inflation protection from "summary" of Institutional Investment Management by Frank J. Fabozzi
Real assets, such as real estate, infrastructure, and commodities, have the potential to provide investors with protection against inflation. This is because the value of real assets tends to rise in periods of inflation, as the prices of goods and services increase. In contrast, the value of financial assets, such as stocks and bonds, may erode in real terms during periods of high inflation. One reason real assets can provide inflation protection is that they often have pricing power. For example, real estate owners can raise rents in response to inflation, while infrastructure projects may benefit from increased demand for their services. Commodities, such as oil and gold, tend to see their prices rise during inflationary periods, providing a ...
Similar Posts
Build a strong financial foundation
Building a strong financial foundation is crucial if you want to achieve financial independence and security. Just like a build...
Role of government is limited
The fundamental principle of a free society is the limitation of the power of the government to interfere with the activities o...
Maximize retirement contributions to save for the future
One of the most effective ways to secure your financial future is to take advantage of retirement accounts. By maximizing your ...
The impact of monetary shocks on the economy can be severe
Monetary shocks, when they occur, can have a profound and lasting effect on the economy. These shocks, often caused by sudden c...
Learning to manage stress and pressure effectively is essential for success
In the fast-paced world of business, the ability to handle stress and pressure effectively is a crucial skill that can determin...
The key to financial success is to take risks and learn from failures
The road to financial success is not always smooth and easy. It is filled with challenges, risks, and failures. However, it is ...
Investment policy statements guide investment decisions
An investment policy statement (IPS) serves as a roadmap for institutional investors to navigate the complexities of the invest...
Journaling about your finances can help you gain clarity and control
When it comes to managing your money, journaling can be a powerful tool. Writing down your thoughts, feelings, and actions rela...
Research and analysis are necessary for successful investing
Successful investing requires a thorough understanding of the companies in which you are investing. This involves conducting ex...
Understanding market complexity is crucial for mitigating crash risks
To navigate the treacherous waters of financial markets, one must grasp the intricacies and nuances that underlie their movemen...