How to preserve our capital in the face of inflationary prices

It is no secret that in times of uncertainty, when a greater risk begins to be perceived in the financial market, people start to talk about hedging strategies in the face of possible corrections in market prices.

Currently, investors' perception is that the greatest risk lies in the sustained increase in medium and long-term interest rates as a reflection of higher inflation expectations. In this sense, given the pressure of outflows from fixed-income securities, the yield on 10-year US debt has reached one-year highs in the last few days.

On the other hand, the enormous amount of disbursements in the form of fiscal stimulus by the different central banks around the world has generated ample private savings capacity. All this added to the possibility of a supply shock in the commodities sector could lead us to think that the inflation expectation currently reflected in the price of financial assets could be underestimated. In other words, medium-term inflation could be higher than expected.

What should we do in an inflationary scenario to preserve the value of our capital in the face of rising prices?

One option is "safe haven assets":

When talking about a safe-haven asset in similar situations throughout history, the first thing that comes to mind is the precious metal par excellence: gold. But then the question arises: Is gold the best alternative available to preserve the value of my capital, or are there options with greater appreciation potential today?