Inflation tail risks worth hedging against

It is sensible for investors to hedge against the tail risk that inflationary pressures ahead might turn out to be more worrisome than anticipated. PHOTO: ST FILE
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SINGAPORE - It is said that nothing is certain in life except death and taxes. For all of us, an invisible tax on our savings that is everywhere and always present is the rate of inflation in our economy.

This is because as the prices of goods and services rise, the purchasing power of our savings falls.

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