The key objective for investors: To protect themselves against inflation and rising interest rates

It now appears that inflation will be long-lasting (we look at the United States, the euro zone and the United Kingdom), and that interest rates will continue to rise, at least until the end of 2023. This implies that investors’ main objective is to protect themselves against inflation and rising interest rates: Listed equities, and therefore eventually unlisted equities, already no longer provide a hedge against inflation; Neither do cryptocurrencies or gold, since their prices are linked to the liquidity created by central banks; Risky bonds are also less attractive due to the rise in risk-free interest rates; This leaves us with inflation-indexed bonds and, of course, residential and commercial real estate as hedges against inflation and rising interest rates; A key question for investors is how long real estate will continue to provide a hedge against inflation and rising interest rates before rising real interest rates push down real estate prices.