Investor Guide: Building Resilient Portfolios in an Inflationary Environment

OpinioPro Selection
By May 12, 2022 08:58

Investor Guide: Building Resilient Portfolios in an Inflationary Environment

Inflationary pressures will likely peak but not disappear

Inflation, once thought transitory, now appears more durable. Supply-demand imbalances, while an expected aspect of the economic cycle, have been exacerbated by the unprecedented nature of pandemic shutdowns. The workforce remains constrained by concerns about health risk, childcare, and other factors. As a result, both consumer prices and wages have been on the rise. The ebb and flow of global health risk has increased the likelihood that it will take even longer for supply chain disruption, labor force participation, and other sources of price pressures to normalize.

In the meantime, inflation is broadening beyond pandemic-impacted goods and services. Rising wages and housing costs suggest higher inflation in the years ahead. Capital spending on renewable energy and carbon-neutral initiatives is also likely to be inflationary in the longer term. By the end of this year, core personal consumption expenditure (PCE) inflation is likely to remain well above the Federal Reserve’s two percent objective.

OpinioPro Selection
By May 12, 2022 08:58

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