Bond Investing in Inflationary Times
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As the chief research officer of Buckingham Strategic Partners, the issue I am being asked to address most often is about fixed income strategies when yields are at historically low levels and inflation risk is heightened due to the unprecedented increase in money creation (through quantitative easing), the extraordinary expansionary fiscal spending around the globe, and the war in Ukraine driving prices higher (especially for food and energy). As always, to answer the question we turn first to the academic evidence on which investments in general provide the best hedges against inflation. Studies such as “The Best Strategies for Inflationary Times,” published in the August 2021 issue of The Journal of Portfolio Management (AA Summary), have found that:
