Economical marketplaces anticipate a particular level of inflation and factor it into the asset charges they established, a problem theoretically neutral for investment portfolios. Unanticipated inflation, on the other hand, can erode portfolios’ purchasing electric power, a problem in particular for buyers with a shorter investment horizon, such as retirees. Do particular asset classes weather unexpected inflation, like we’ve observed lately, much better than many others? Latest Vanguard research implies that commodities stand aside as a vehicle for hedging towards unexpected inflation. In excess of the past 3 a long time, commodities have had a statistically sizeable and largely consistent positive inflation beta, or predicted response to a unit of…