Consumers Expect Higher Inflation (And Volatility) For Longer | ETF Trends

Market volatility continues as investors process the latest inflation figures and brace for lingering high prices. Stocks gave up the gains they made earlier in the morning on Friday after a consumer survey from the University of Michigan showed increased expectations for persistent inflation.

Per the survey, the median expected year-ahead inflation rate rose to 5.1% after long-run inflation expectations fell below the 2.9% to 3.1% range last month for the first time since July 2021. Since then, expectations have returned to that range at 2.9%.

“After three months of expecting minimal increases in gas prices in the year ahead, both short and longer run expectations rebounded in October,” wrote Surveys of Consumers Director Joanne Hsu.

As consumers, investors, and analysts expect higher-for-longer inflation, markets are likely to continue bouncing. So, investors should be patient and proactive with their stock investing. That’s where active management can help.

While passive strategies lack the flexibility to adapt to changing market environments, active ETFs can offer the potential to outperform benchmarks and indexes. Plus, active managers with greater resources and greater scope benefit from economies of scale, which can often translate to better returns.

“Through active ETFs, advisors can benefit from a team of fundamental analysts and managers to identify stocks that are not reflecting pending catalysts for future growth,” said Todd Rosenbluth, head of research at VettaFi.

As part of its lineup of active ETFs, T. Rowe Price offers a suite of actively managed equity ETFs, including the T. Rowe Price Blue Chip Growth ETF (TCHP), the T. Rowe Price Dividend Growth ETF (TDVG), the T. Rowe Price Equity Income ETF (TEQI), the T. Rowe Price Growth Stock ETF (TGRW), and the T. Rowe Price US Equity Research ETF (TSPA).

T. Rowe Price has been in the investing business for over 80 years through conducting field research firsthand with companies, utilizing risk management, and employing a bevy of experienced portfolio managers carrying an average of 22 years of experience.

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