Which of the following statements regarding inflation and investing is true?
A) Futures are the best hedge against inflation.
B) Inflation is not a problem in a buy-and-hold strategy.
C) Common stock is not always a hedge against inflation.
D) All of the above statements are true.

Question

Quizplus · Accepted Answer

Common stock is not always a hedge against inflation because the performance of stocks can be affected by a variety of factors, including but not limited to inflation. While stocks have historically outpaced inflation over the long term, there are periods when this has not been the case, and individual stocks or sectors can be negatively impacted by inflationary pressures.

Which of the Following Statements Regarding Inflation and Investing Is