This article starts off by saying that inflation has jumped massively over the course of time from 1.4% to 8.2% currently, the author then questioned how its going to have the possible inflation hedges be performed. The article then goes to give examples about inflation and how over time the price of different goods would be different. Mining stocks we will look at S&P/TSX indexโs. What this did was show the differences in prices due to inflation. Lastly the article goes over how there is no assurance in if inflation hedges will continue due to different circumstances.
In chapter 10: be prepared for trouble in your sector of the economy we can make the connection to how inflation has a strong hold when it comes to businesses. For example the case of high oil prices in 2022 when Russia had to stop exporting oils to different countries, and in sequence to that the United States could not produce enough oil for the demand. Because of this they had to continue importing from other countries and made gas prices go up to $5. This connects to the article because its a clear example of how inflation can cause prices to sky rocket due to the amount of supply they have in return for the demand.