Focusing on the role of the investment horizon, we analyze the inflation-hedging abilities of stocks, bonds, cash and direct commercial real estate investments. Based on vector autoregression for the UK market we find that the inflation-hedging abilities of all assets improve with the investment...

In this article, three oft-mentioned special characteristics of the real estate asset market – high transaction costs, marketing period risk, and return predictability – are addressed in analyzing the role of UK commercial real estate investments in a mixed asset portfolio. Due to favorable...