Real Estate: A Potential Hedge Against Inflation
A common concern among investors is whether or not their investment portfolio can keep pace with the rate of inflation. While the U.S. inflation rate remains at or near historically low levels, many economic observers believe that recent monetary policy may lead to higher inflation in the near to mid-term.
While no one can predict when or if significant inflation will strike, well-balanced investment portfolios typically include assets that serve as a hedge against inflation’s corrosive impact on savings.
Real estate has long been considered by many to be an effective hedge against inflation and returns for both equity and mortgage REITs have historically outpaced the rate of inflation.