With inflation concerns top of mind, many investors are turning to real assets and alternative investments that have historically responded well in inflationary periods. Browse our latest content to learn how these strategies can potentially support inflation-resilient portfolios.
Many investors are positioning portfolios for higher inflation and rising interest rates
Aggressive fiscal and monetary policies could drive inflation and interest rates higher
Real assets feature inflation-linked economic drivers
Alternative income solutions offer reduced sensitivity to rising interest rates
With inflation concerns top of mind, many investors are turning to real assets and alternative investments that have historically responded well in inflationary periods. Browse our latest content to learn how these strategies can potentially support inflation-resilient portfolios.
INSIGHTS
James Corl
William Scapell, CFA
Michelle Butler
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Secular drivers of inflation
Watch videoRecent data indicates a slowing inflation trend, yet risks persist. Secular forces suggest that a prolonged elevated inflation period is underway with the potential for periodic price spikes. Factors driving long-term inflation include commodity underinvestment, tight labor markets, geopolitics, deglobalization and fiscal uncertainty. We see parallels to past inflationary eras, which highlight the difficulty of controlling inflation. While not predicting a return to 9%, the expectation is for a decade of higher-than-accustomed inflation, underscoring the importance of having a real assets allocation.
Real assets: The benefits of the blend
Watch videoInvestor approaches to employing real assets within their portfolio will vary. Whether looking to invest in individual asset classes or a multi-strategy blend, portfolio specialist
Portfolio Adviser: Why real assets today
Watch videoHistory shows that including real assets in a portfolio may provide inflation sensitivity, greater portfolio diversification, and attractive risk-adjusted returns over full market cycles.
Defending against inflation with real assets
Watch videoAfter a choppy start, expectations are for global growth to slow in 2022, but for inflation to remain elevated. In this environment of stagflationary outcomes, many investors are turning their attention to real assets.
Secular drivers of inflation
Recent data indicates a slowing inflation trend, yet risks persist. Secular forces suggest that a prolonged elevated inflation period is underway with the potential for periodic price spikes. Factors driving long-term inflation include commodity underinvestment, tight labor markets, geopolitics, deglobalization and fiscal uncertainty. We see parallels to past inflationary eras, which highlight the difficulty of controlling inflation. While not predicting a return to 9%, the expectation is for a decade of higher-than-accustomed inflation, underscoring the importance of having a real assets allocation.
Watch videoReal assets: The benefits of the blend
Investor approaches to employing real assets within their portfolio will vary. Whether looking to invest in individual asset classes or a multi-strategy blend, portfolio specialist
Watch videoPortfolio Adviser: Why real assets today
History shows that including real assets in a portfolio may provide inflation sensitivity, greater portfolio diversification, and attractive risk-adjusted returns over full market cycles.
Watch videoDefending against inflation with real assets
After a choppy start, expectations are for global growth to slow in 2022, but for inflation to remain elevated. In this environment of stagflationary outcomes, many investors are turning their attention to real assets.
Watch videoEXPLORE OTHER THEMES
Important Disclosures
This information is provided for informational purposes only, and should not be construed as legal or tax advice. You should consult your legal or tax advisor regarding your individual circumstances. Diversification does not guarantee a profit or protect against a loss.
The views and opinions are as of the date of publication and are subject to change without notice. This material represents an assessment of the market environment at a specific point in time, should not be relied upon as investment advice and is not intended to predict the performance of any investment. We consider the information to be accurate, but we do not represent that it is complete or should be relied upon as the sole source of appropriateness for investment. There is no guarantee that any historical trend illustrated above will be repeated in the future, and there is no way to predict precisely when such a trend will begin. There is no guarantee that a market forecast set forth in this commentary will be realized.