Investing in Companies Is a Great Hedge Against Inflation

From 19 78 to 19 83, inflation has averaged about three and a half % per year. But the s and p 500 is returned 12 point four % annually. This shows us that during a small window of an inflationary time, equities or companies are a great hedge against inflation. We don't know what inflations going to be ovr the next one, two, three, five years, but over the long term, we can say that it's fairly comfortable and confident that it's going to revert somewhere close to the mean.