If you are thinking about inflation-hedging investments, you may be led to consider some classics: gold, real estate investment trusts and oil are prime examples. But that kind of thinking may do more damage to your wealth than it's worth, for a simple reason: No two reflation trades are created equal.
Throughout stock market history, there have been bouts of high and low inflation, each time accompanied by factors that were unique to the period.
"Conditions in the real world do not exist in a vacuum," said Mitch Goldberg, president of investment advisory firm ClientFirst Strategy. "In reality, the 'inflation trade' has never been this straightforward, simple formula," he said.
So look before you leap into the tried-and-true inflation-hedging asset classes.