VNQ - Profiling A 'Real Assets' Portfolio During The Recent Inflation Surge

2024-03-20 10:00:00 ET

Summary

• The sharp run-up in US inflation in 2021-2022 revived the idea that a so-called real assets portfolio is crucial for asset allocation strategies.
• Real-assets benchmark outperformed during the early part of 2022 when markets generally took a heavy blow.
• If inflation continues to moderate, which seems likely in the near term, the value of real assets in a diversified strategy will remain challenged.

The sharp run-up in US inflation in 2021-2022 revived the idea that a so-called real assets portfolio is crucial for asset allocation strategies. But with the peaking of inflation in mid-2022, the outlook has turned murky for a dedicated focus on assets that are expected to benefit from higher pricing pressure....

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