Four hedges against inflation to buy now

The huge amount of money thrown at the economy recently makes higher inflation inevitable in the long run. But income stocks - particularly at current levels, can offer an attractive hedge. Here, professional investor Julian Chillingworth picks four of his favourites.

Each week, a professional investor tells MoneyWeek where he'd put his money now. This week: Julian Chillingworth, chief investment officer and manager of the Rathbone Blue Chip Income and Growth Fund.

We believe we are in the midst of a U-shaped recession, and growth will remain anaemic into 2010. Despite a recent knee-jerk bounce in cyclical stocks, investors don't want to buy in too early, as earnings growth and ratings may yet surprise on the downside. However, the current environment is a great buying opportunity for those prepared to take a five-year view on equity markets. Now is the time for careful, considered entry into well-run firms with strong cash-flows and growth potential.

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