I came across this Morningstar article from Nov, 2020 (long before inflation hit 8%) posted by Taylor on another thread (Inflation-Protected Bonds vs. Total Bond Market Index Fnd, viewtopic.php?p=6429829
Traditional Investments Can Weather Inflation
Alex Bryan, CFA
Nov 13, 2020
Here's the key recommendation:
Keep It Simple
It’s tough to completely protect against inflation in the short term, but that’s OK because inflation usually isn’t a big problem in the short term. Over the long term, the erosion of purchasing power can become significant.
The best option to manage this risk is probably the simplest: sticking to broad, market-value-weighted stock and bond portfolios, like Vanguard Total Stock Market ETF (VTI), which has a Morningstar Analyst Rating of Gold, and Vanguard Total Bond Market ETF (BND), which is rated Gold. Over the long term, these have tended to preserve and grow purchasing power better than instruments commonly used as inflation hedges, like short-term TIPS, commodity futures, and gold.
https://www.morningstar.com/articles/10 ... -inflation
This 2020 Morningstar article pretty much addresses all my concerns (with the usual caveats that past doesn't predict the future, etc.)
But I'm curious to find out how many on this forum disagree with this prescription.