Inflation & Interest Rates

Inflation & 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.

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

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.

Tariffs, market volatility and the implications for real assets
April 2025 | 7 mins
Real assets have less exposure to tariffs relative to many other asset classes, generally predictable earnings, and are well positioned in a new market cycle.

Why preferreds and high yield make a great pair
April 2025 | 10 mins
With many investors turning to riskier bonds for yield, diversification is key. Pairing high-yield bonds with preferreds, which have attractive yields and distinct characteristics, may complement traditional fixed income holdings.
Capital Market Assumptions
March 2025 | 22 mins
Expected returns for the next 10 years amid elevated inflation and resilient global growth
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Jeffrey Palma

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Secular drivers of inflation

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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.

Real assets: The benefits of the blend

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Investor approaches to employing real assets within their portfolio will vary.

Portfolio Adviser: Why real assets today

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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.

Defending against inflation with real assets

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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.

Secular drivers of inflation Real assets: The benefits of the blend Real assets: The benefits of the blend

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 video

Real assets: The benefits of the blend

Investor approaches to employing real assets within their portfolio will vary.

Watch video

Portfolio 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 video

Defending 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 video

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