…in todays conditions, which would be your preference?
Something inflation proof…
Remain unchanged. Market condition does not affect my portfolio construction. A portfolio is for decades, not for the weeks or months ahead.
In fact, a market decline means the stocks are cheaper to buy now than before, and the expected return has also gone up, because now I can buy more shares with the same amount of money. Since I’m still in the accumulation stage, I would welcome the market to go down even further, and stay low for years before booming again.
There’s no inflation proof investment product available on the public market. The NS&I has one, but it’s not available to new customers.
For most people, their best bet is try to beat the inflation (opposite to hedge against it) by investing in a risk-appropriate portfolio with expected return above the rate of inflation in the long run. That usually involves investing a large % of it in stock and shares.