Inflation Hedge For Real Estate VS Stock Market

Real Estate: Real estate is considered an effective hedge against inflation. As inflation rises, so do property values and rental income, protecting your purchasing power. Fixed-rate mortgages also become cheaper in real terms as inflation increases.

Stock Market: The stock market can also act as a hedge against inflation, especially through companies that can pass rising costs onto consumers (e.g., commodities, consumer goods). However, stocks tend to be more volatile during inflationary periods compared to real estate.