Going Up: The Return of Inflation and How to Manage It

By Jonathan Scheid, CFA, AIF®
There is no way to hide that prices are rising for the goods and services we use. A day doesn’t seem to pass without hearing of a new shortage, a supply disruption, or an increase in demand that is impacting the price we pay for something. From a shortage of semiconductors affecting the price of new and used cars to higher oil prices raising the cost of gas and backups at ports restricting supply, it is no wonder that inflation and inflation expectations are on an upswing.

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Going Up: The Return of Inflation and How to Manage It

By Jonathan Scheid, CFA, AIF®

There is no way to hide that prices are rising for the goods and services we use. A day doesn’t seem to pass without hearing of a new shortage, a supply disruption, or an increase in demand that is impacting the price we pay for something. From a shortage of semiconductors affecting the price of new and used cars to higher oil prices raising the cost of gas and backups at ports restricting supply, it is no wonder that inflation and inflation expectations are on an upswing. (more…)

Are Concerns About Inflation Inflated?

KEY TAKEAWAYS

  • Recent Dimensional research suggests that simply staying invested helps outpace inflation over the long term for a wide range of asset classes.
  • The protection offered by inflation-indexed securities still appears to be the most effective for investors who are particularly sensitive to unexpected inflation.
  • Our analysis of data from 1927–2020 covers periods with double-digit US inflation as well as periods with deflation.US consumer prices were up by 5.4% for the year ending June 2021, the largest annual increase since August 2008.1 (more…)

Inflation and Your Portfolio

Stock market indexes continue to set new record highs, but investors are increasingly focused on another number: inflation. Although the U.S. Bureau of Labor Statistics reported a 4.2% annual increase in inflation in April, we should take time to understand where that number comes from and what it means. Knowing this answer and the different ways inflation is calculated can help add some valuable perspective the next time you hear it discussed in the news media or among colleagues. (more…)

How Real Is Post-Pandemic Inflation Risk?

By Alex Kluesner

Governments around the world have made unprecedented efforts to support the global economy in response to COVID-19 by increasing spending and getting cash into the hands of both consumers and companies. Steps taken thus far may well have been necessary to help fight the pandemic’s economic fallout – but at what cost? Pundits are starting to point their collective finger at a dramatic increase in inflation, which is the idea that currency depreciates – buys less – as time goes on. (more…)

Why Is Inflation So Low? (And What to Do About It)

By: Guest

Ronald Reagan famously described inflation as being “as violent as a mugger, as frightening as an armed robber and as deadly as a hitman.” While the inflation experienced under President Reagan was all those things, inflation over the past decade would struggle to get a ticket for jaywalking. (more…)