Safeguarding against inflation: A defensive share strategy
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Australia’s inflation rate has experienced notable fluctuations over the last couple of years. It has been significantly influenced by global disruptions such as the COVID-19 pandemic and geopolitical tensions. These factors, coupled with supply chain constraints and rising commodity prices, have escalated costs across various sectors. This poses a challenge for investors looking to maintain the real value of their portfolio returns.
Impact of inflation on real returns
Inflation erodes the purchasing power of money, directly impacting the real returns of investments. For investors in the stock market, this means that nominal gains can be offset by the rising cost of living, leading to…
