Abstract

Portfolio managers seeking to hedge the domestic inflation threats posed by quantitative easing may find that international equities are their best bet. In <b><i>Inflation Hedging with International Equities</i></b>, author <b>Maximillian Rödel</b>, Head of Demand and Inventory at <b>Swarovski</b>, investigates the potential benefits of the approach. He studies inflation hedging across different times, countries and levels of equity investibility. Rödel finds that the use of international equities to hedge inflation works best in those countries that experience inflation shocks and possess a weak currency. And in monetarily stable countries, the strategy works least well—perhaps even worse than the use of domestic equities. <b>TOPICS:</b>Portfolio theory, financial crises and financial market history, in markets

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