Inflation and the Case for Real Assets

At this point, I think we’ve moved on from the notion that the inflation we’re seeing could be considered “transitory.” It’s been with us for a while, and it will take some time before we see any effects from the Fed’s upcoming rate hikes.

If you’re interested in protecting against inflation, there are some asset classes you may want to consider adding, if you haven’t already.

With the exception of the band I placed around my wife’s finger, I’ve never been a big fan of owning gold. I have however, invested in both farmland and passive real estate.

Inflation and the Case for Real Assets 

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Prolonged inflation is bad news for investors. In a traditional 60/40 portfolio, 60% of capital is invested in stocks and the remaining 40% in bonds. While the portfolio has delivered relatively consistent returns over the past few decades, it may be time to rethink this mix.

Why inflation spells trouble for traditional investments

In a rising interest rate environment, sophisticated investors increasingly turn to real assets as a way to protect their long-term returns.

Real assets provide a tried and true hedge against inflation

Another major difficulty for doctors is that everyone else sees them as rich, even if their incredibly negative net worth actually ranks them as being some of the poorest people on the planet.

#3 Societal and Family Expectations

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