The case for using real assets to hedge inflation

With inflation levels the highest in 40 years and the Fed dramatically raising rates to combat inflation, institutional investors are increasingly recognizing the benefits of exposure to real assets, specifically focusing on natural resources, infrastructure and real estate.

Though many investors believe we may have reached peak inflation levels, most agree that the transition back to the Fed’s stated inflation target of 2% is a long way off. This has created a risk that inflation and subsequent Fed rate hikes may surprise to the upside for 2023.

Published by Christopher Huemmer in Pensions & Investments.