November 17, 2021 – There are many ways we position a portfolio to address periods of possible inflation. Here are some fundamental principles:
- Specific allocations to real estate provide some return correlation in a period of rising inflation. Rental real estate provides the ability to raise rents while fixed-rate mortgages mute the impact of rising interest rates.
- Recent tactical changes to the equity portfolio composition (e.g., a switch away from growth toward value investing is meant to take advantage of sectors historically performing well during a similar cycle.)
- For fixed income (bonds), we manage the portfolio with shorter maturities to dampen the effect of rising interest rates.
- The Robertson Stephens Chief Economist and Chief Investment Officer constantly monitor the economic landscape and capital markets and provide meaningful insights on effective portfolio rebalancing opportunities.
Please get in touch with us with any questions, and feel free to pass along this information to family or friends who may be interested.