Inflation Is Here: Time to Get Real with Real Assets | ETF Trends

By David Schassler, Portfolio Manager and Head of Portfolio and Quantitative Investment Solutions, VanEck

Many market observers believed that we would not have high inflation and that any inflationary forces would be mild. This was not correct. As of May 31, 2021, the year-over-year inflation change was 5%, based on the Consumer Price Index.[1]

We believe it is time for investors to start taking the risk of an extended period of high inflation seriously by adjusting portfolio exposures into assets that protect against inflation. In this white paper, we seek to help investors navigate this investment climate. Topics include:

  • How the current market compares to the inflation in the U.S. in the 1970s and mid-2000s
  • Performance of real assets (commodities and gold) during prior inflation regimes
  • Inflation and the prices of commodities and natural resource equities today
  • Impact of bitcoin as “digital gold”, and another store of value asset available to retail investors
  • How investors can size a portfolio allocation for inflation protection
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Originally published by VanEck, 6/16/21


Source: Bloomberg. Data as of 6/10/2021.Please note that VanEck may offer investments products that invest in the asset class(es) or industries included herein.

The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

S&P 500 Index is a free-float weighted measurement stock market index of 500 of the largest companies listed on stock exchanges in the U.S.

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