Inflation is rampant and ubiquitous today, from the gas pump to the grocery store. The U.S. consumer price index has quadrupled in the past year, from a 1.7% annual rate in February 2021 to 7.9% this past February, a 40-year high.
Consumers aren’t alone in feeling the painful impact of higher prices. For a generation of investors who rarely had to worry about inflation eroding their wealth, the past year’s spike marks a major change—and ought to prompt a re-evaluation. Specifically, investors should consider adjusting their bond and stock holdings to manage inflation’s impact, while adding commodities and real assets to their portfolios.
Read more here.