Stealing the title from Matt. Also commenting on that theme; this is also a followup on the last post...
Inflation is a double edged sword. Higher inflation reduces the value of any saved cash, but it also reduces the real value of any debt. Investments that hedge against inflation are, therefore, things that have a value that is linked to inflation.
Real estate is an inflation hedge because if inflation happens, my house gets more expensive in dollar terms, even if it's "value" remains the same, but the amount that I paid for it and my monthly mortgage payment so long as I have one don't change a bit.
The downside of inflation is that the cash I have stashed in the bank is worth less.
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