The inflation risk to a traditional 60/40 “balanced” portfolio is Real
A typical 60% equity/40% fixed strategy has done well in conjunction with stable or declining inflation. But what about even a mild increase in inflation? That has been quite different. Michael Ashton, Director of Research at Real Asset Strategies, has some key insights into why you might want to consider adding inflation related investments to your portfolio. Inflation Shocks, Inflation Vol Shocks, and 60-40 Returns Not surprisingly, there has been a lot of debate about the ultimate … [Read more...]
Gasoline and Headline Inflation
Headline deflation is likely headed our way in the short term but not necessarily just because of the recession. Headline CPI tracks gasoline pretty well. … [Read more...]
M2 Velocity at Record Lows
Could it go lower? Sure...and it better if M2 keeps skyrocketing. That is if we want to avoid much higher inflation. … [Read more...]
Record Highs! …in money growth.
The last high? About 45 years ago in 1976. Can you see that little bump in money stock during the ’08 GFC? … [Read more...]
Last Time Was Different
April 13, 2020 Last Time Was Different Michael Ashton, Director of Research, Real Asset Strategies They say that the four most dangerous words in investing/finance/economics are “This time it’s different.” So why worry, the thinking goes, about massive quantitative easing and profound fiscal stimulus? "After all, we did it during the Global Financial Crisis and it didn’t stoke inflation. Why would you think that it is different this time? You shouldn’t: it didn’t cause inflation last … [Read more...]