The 60-40 portfolio has been a solid long-term performer for investors. It has worked in bull markets. It has also held up well in deflationary shocks. But with expected returns…
Tag: inflation
What Vanguard Found as Potent Inflation-Fighting Asset
Research by Vanguard shows that not all inflation hedges are created equally. This according to a recent MarketWatch article. TIPS: The article reports that although investors have been drawn to…
Are Equities an Inflation Hedge?
A recent CFA Institute article debates the case for equities as an inflation hedge. “Since operating businesses can increase their prices at will, the theory holds, they can mitigate the…
Goldman: Inflation Will Do a Number on Stocks
A new study by Goldman shows that stocks will do well if inflation remains muted, but an escalating consumer price index (CPI) will hurt returns. This according to a recent…
Paul Tudor Jones: If Fed Ignores Prices, “Go All In” on Inflation Trades
Last month, billionaire hedge fund manager Paul Tudor Jones told CNBC that he’s paying close attention to the Fed given the rise in consumer prices. If the Fed treats the…
Gundlach Predicts Inflation Nearing 5%
In a webcast earlier this month, DoubleLine CEO Jeffrey Gundlach shared his thoughts on “distortions brought on by the lockdown and stimulus.” This according to a recent article in Financial…
Siegel Talks Inflation
In an interview last month with CNBC, Wharton finance professor Jeremy Siegel discussed the money supply, inflation, and the market outlook for the next 2-3 years. Here is a summary…
Rob Arnott, founder of Research Affiliates, on Inflation, Bubbles and the Future of Value Investing
Although the word unprecedented tends to be overused, we are seeing many things in the market currently that many of us haven’t seen before. Fiscal stimulus has increased to levels…
A ‘Red Flag:’ The S&P 500 Inflation-Adjusted Yield is Below Zero
The dividend and earnings yield of the S&P 500 is at a record low—even though it still beats that of Treasuries—and is raising some concern. This according to a recent…
Bonds Useless as Hedge to Stocks
The role of bonds as a “shock-absorber” and safe haven has “eroded as the fear of inflation becomes a common denominator for both stock and bond investors.” This according to…