While providing an effective hedge against inflation, real assets do not have particularly efficient liquid markets.

Question

Quizplus · Accepted Answer

Real assets may offer an opportunity as an inflation hedge because inflation means higher replacement costs for real estate, precious metals, and other physical items. Real assets also serve as an investment hedge against the unknown and feared. There are many disadvantages to consider as well. Perhaps the largest drawback is the absence of large, liquid, and relatively efficient markets.

While Providing an Effective Hedge Against Inflation, Real Assets Do