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Cash as inflation protection

The best protection against an inflation scare might well be to hold more cash.
Cash as inflation protection
  • Serious inflation scares can cause losses on equities, gold and bonds. Cash protects us from these.
  • The Bank of England might eventually raise real interest rates if it becomes more worried about inflation – meaning better returns on cash. 

What’s the best way to protect ourselves against an inflation scare? The answer, surprisingly, might be to hold cash.

One reason I say this is simply that inflation is worse for other assets.

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