Concerned About Inflation? Economists Share the Best Investment Strategies
Key Takeaways
- Diversification across asset classes remains the strongest defense—no single investment perfectly hedges inflation.
- Treasury Inflation-Protected Securities (TIPS) can underperform during rate hikes, but they offer direct inflation protection when held to maturity.
- Real estate investment trusts (REITs) can hedge inflation, though their behavior can mimic equities during volatile markets.
- Commodities, especially gold, can spike when inflation surprises, but long-term volatility makes them unreliable as a sole hedge.
Consumer prices jumped 2.9% in August 2025—the fastest pace of the year—driven in part by the Trump tariffs, which have pushed inflation expectations to 4.8%, well above the Fed’s 2% target.
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