
Commentary, April 8, 2022
Hedging investment portfolios against the risk of a real loss of value has only played a minor role over the last two decades. In fact, until not too long ago, deflation, i.e. retreating consumer price indices, seemed the more imminent danger in this context. The more wrongfooted investors might have been in the face of the currently broad based price rises both for producers and consumers alike. In fact, the dynamic and heftiness might have even surprised professional investors, also from a long argued “temporariness” point of view of this relatively recent phenomenon. Yet even the last doubters of the seriousness of this topic might have surrendered in the face of consumer price rises of 7.5% p.a. in the Eurozone and 7.9% p.a. in the United States in March 2022.