As Japan has taught us for 20 years...the Best hedge in an inflationary environment is Upward moving stocks. As long as you "dont hold dollars very long" and your money is pretty much all in upward moving stocks untill just before you spend it...you can hedge away inflation. "but stocks must continue moving up" "there needs to be both high corp earnings and good wages for people to place money into stocks" "Corp needs to constantly invest their earnings somewhere...they cant just keep it in a bank"