Bank of America lays out 7 ways investors should start preparing portfolios before inflation jumps – and explains why to expect higher consumer prices and interest rates for the foreseeable future
have also warned of elevated inflation due to the period of deglobalization we are in.
Hartnett's recipe for attractive gains in this period consists of a mixture of bonds, stocks, cash, and commodities. More specifically, he's recommending equal target weights among these securities, meaning 25% in stocks, 25% in bonds, 25% in cash, and 25% in commodities. , and it aims to perform well in any economic environment through diversification.
As a result, Hartnett sees greater price swings in these asset classes even if inflation rises in an orderly manner. about 10% every year since 1926, while bonds returned about 5%, according to Morningstar data.