Point of View With Phil Green and Michael Fredericks
Inflation is a fact of life for investors, and one that should be planned for.
The effectiveness of individual “inflation fighters,” such as TIPS, will vary based on the economic and inflation backdrop.
A flexible, multi-asset solution can adapt to changing market conditions in an effort to protect against inflation and optimize returns.
Inflation hardly seems like the topic at the top of investors’ worry list. Although it may not be the most pressing and immediate threat, it is a sure one. Unlike other types of investment risk that may come and go, inflation is a fact of life, quietly threatening to erode the value of your current savings and the future purchasing power of your portfolio. It is for that reason that Michael Fredericks and Phil Green believe it makes sense to have some element of inflation protection built into a portfolio, and ideally one with the flexibility to adapt to changing market conditions and inflation expectations.
The everyday threat. Inflation is a fact of life for investors, and one that should be planned for. Consider that even relatively moderate inflation of 3% can result in the loss of more than half your purchasing power over 25 years.
All inflation fighters are not the same. A number of different assets are commonly used to hedge against inflation, but all will not provide the same level of protection in every economic and inflation scenario.
A multi-asset strategy is the “real” deal. A flexible, multiasset strategy that incorporates various inflation fighters and adapts to different market environments can be the best way to optimize after-inflation (i.e, real) returns