Many economies are currently experiencing high inflation rates after recovering from the COVID pandemicin2020.Forexample,theUSrecordsanannualizedinflationrateof9.1%duringtheJunequarter of 2022, the highest in three decades. Similarly, Australia recently experiences a record-highinflationrate of7.8% for the December quarterof2022, and a slightly mild rate of 7% for the April quarter of 2023. Thereareseveralfactorsthatcontributetothe riseininflation.Theyincludestrongerdemandsfor goodsandservices aftertherecovery,increases in energy costs, geographical tensions and war, and bottlenecksinglobalsupplychains.Fromaninvestorsperspective,discusswhetherstocksandbondsarea good hedge against higher inflation.Among stocks, what characteristics (or types) of stocks are preferable in the presence of higherinflation?