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It’s Shocking: Inflation’s Impact On Asset Allocation

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  • June 20, 2022June 20, 2022
asset allocation

Investors need to think beyond the 60/40 portfolio in periods of high inflation. Historically, real assets have provided diversification to help manage the impact of inflation.

The 60/40 portfolio may not be a good investment solution during a period of high inflation. High inflation erodes corporate profit margins and leads to higher interest rates and overall financial instability. As such, stocks and bonds have historically not performed well during periods of high inflation, which means that investors need to think beyond what has worked during periods of low inflation.

During periods of high inflation, commodities and other real assets have historically provided the much needed diversification.

Take a look…

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