7 Ways to Hedge Against Inflation
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Inflation Hedge #4: REITs
Remember the old adage: "Buy land, they aren't making any more of it." Every Econ 101 student is told that the value of real assets rises during periods of inflation. So another solid inflation hedge is real estate, both residential and commercial.
And while there are more factors to consider when investing in real estate stocks, there's no denying that Real Estate Investment Trusts, or REITs, can be a good hedge against inflation. REITs are companies that own and operate portfolios of commercial and residential real estate. But rather than buying individual REITs, why not choose a broad-based ETF like the iShares Dow Jones U.S. Real Estate Index Fund (IYR)? With IYR, you gain exposure to some of the biggest and best real estate investment trusts out there.
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