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by AnimalMuppet 762 days ago
The one "normal" people actually use is buying a house; this hedges against inflation in the cost of shelter.

We could buy options on oil, wheat, pork bellies, and such, but normal people don't.

1 comments

Specifically, buying a house with an American fixed-rate style mortgage hedges against inflation in terms of interest rates (assuming they rise to counter inflation), value (assuming it rises in tandem with inflation), and leverage (broadly-accessible 1:5 with no call isn't bad!).

But to the broader point, bemoaning helplessness in the face of inflation is false.

There are tons of things essentially everyone could do to hedge inflation, if they were willing to pay the fee to do so.