This year the price of the ten-year gilt (Treasury 4.5% 2032) has fallen by 25% and that of the 30-year gilt (Treasury 3.75% 2052) by 50%. Anyone who thought that they could protect themselves from inflation with index-linked gilts has had a shock: the price of the FTSE Actuaries UK Index Linked Gilts Over 15 Years Index has fallen by 60%. At the start of the year, investors were massively over-paying for inflation “protection”.
Investment crashes are normally associated with high-risk equities (technology stocks in 2000-2003, financials in 2008, and the Nasdaq this year), but
