Cash as an Inflation Hedge
It fares surprisingly well, if the Federal Reserve obliges.
Currency Versus Cash
Several readers questioned my claim in "What If Inflation Isn't Dead?" that cash would be a useful portfolio asset, should inflation resurface. Let's discuss.
To start, the standard depiction of cash as an asset that withers over time is false. The motivational speaker holds up a 3-cent stamp and proclaims, "This is what happens to people who don't invest." (I watched that very presentation.) Not so, unless the cash consists of currency stashed under a mattress, thereby becoming a foolish version of gold that burns all too easily.