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Are Stocks Your Best Hedge Against Runaway Inflation?

2 13 9
15.10.2021

After being fairly subdued for many years, inflation is suddenly being talked about everywhere. How should you tailor your investment strategy in light of the current U.S. inflation rate of 5.4%?

While financial advisors routinely discuss inflation with clients, it hasn’t made much impact until this year.

There’s been plenty of chatter about whether current high readings are structural or transitory. Either way, it’s a good time to check your portfolio to be sure all your assets are invested properly to avoid inflation eroding your future spending power.

According to a report from the CFA Society, a survey of quant investors at a JPMorgan conference found that 47% of respondents believe commodities are the best inflation hedge. Twenty-seven percent said equities; 10% said rate products such as bonds with low risk of default and Treasury inflation-protected securities; while 17% cited “other.”

It’s easy to see how commodities could stay ahead of inflation. For example, the awkwardly named........

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