“Beware…inflation is coming!” warns virtually every market pundit and prognosticator.
We agree that over the near term, inflation will be elevated, perhaps sharply so, as the world recovers from its self-imposed Covid isolation. What does that mean for our clients, however? Should they rush to reposition their portfolios into gold, Tips, commodities and value stocks or should they stick with their long-term strategies, viewing the recent spike in inflation as merely transitory? The attached note seeks to more fully frame the question and offers our thoughts.