In his latest Eureka Report article, Buffett's dividend secret , Scott Francis looks at a key characteristic of Australian shares - their ability to outperform inflation through dividend growth.
Even during the tough conditions experienced on the ASX since late 2007, dividends have continued to grow.
In a tough investment climate like this it is very appealing to give up on shares and rather stick your money in cash or even bonds. However history tells us that an exposure to Australian shares will also be helpful in fighting of the impact of inflation over the medium to long term.
I encourage you to take a look at Scott's article,