Securities as a hedge against inflation: 1910–1969

How well have marketable securities performed as a hedge against inflation?The question is a very old one to which many writers have addressed themselves. The evolutionary nature of financial markets, financial theory, and financial instruments requires continued reevaluation of previous investment decisions. The purpose of this study is to review the performance record of 14 risk classes of securities, which range from long-term government bonds through five different classes of common stock. The average annual investment relatives adjusted for price-level changes are compared for various periods during which the price level is essentially stable, rising, and falling.