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5 Ways to Inflation Proof Your Portfolio

Three leading Portfolio Managers reveal their investing strategies for these uncertain times.

Concerns about inflation and supply chain issues are all around us. The traditional Thanksgiving dinner, up 14% from last year; could inflation fears keep some consumers away from traditional Black Friday shopping; it all has many experts predicting it will get worse before it gets better.

Just in time for the holidays, TheStreet brings you an all-star team of experts to help you navigate these uncertain times. The FREE webinar: How to Play the Inflation Trade, is presented by VanEck.

Experts include:

TheStreet's Susan McGinnis hosts the 45-minute conversation, see the excerpt above or watch the full webinar below.

5 Inflation Proofing Investing Strategies

During the webinar, the portfolio managers outlined five strategies to inflation-proof their portfolios.

  1. Real assets (real estate, energy, infrastructure)
  2. Precious Metals (Gold, cryptocurrency)
  3. Set long-term goals
  4. Utilize interest rates market
  5. Diversify your portfolio

David Schassler, Portfolio Manager and Head of Portfolio and Quantitative Investment Solutions at VanEck, notes that “Inflation is here. It's ugly. The good news is that people can do something about it.… Go out and buy real assets because historically, those are the ones that have done the best during periods of high inflation.”

"If you look at the previous inflation cycles, gold responds in the second half because people wake up to the idea that they have an inflation problem. They've got to do something about it. Schassler points out, "Gold's starting to catch a bit."

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The majority of investors with long-term retirement goals tend to have time horizons that extend beyond inflationary cycles. The current inflationary period has a timeline of its own and the impact on asset classes is unknown. Schassler notes that while “Fed's been using the most powerful tools they have in their arsenal so far...we are a very highly leveraged economy. If you increase the cost of borrowing, it's going to have profound impacts on the economy, and it's likely to force a recession.” 

About David Schassler, Portfolio Manager of the Inflation Allocation ETF, RAAX, at VanEck

About David Schassler, Portfolio Manager of the Inflation Allocation ETF, RAAX, at VanEck

Related: 8 Assets to Inflation-Proof Your Portfolio

Nancy Davis, Founder and Chief Investment Officer, Quadratic Capital Management, prefers to utilize the interest rate markets as a way to profit from lower front-dated yield expectations or higher long-dated yield expectations. “I think that the key is not having to take a bet on the level of interest rates, but really a bet on that spread widening," she added. 

About Nancy Davis, Founder and Chief Investment Officer, Quadratic Capital Management

About Nancy Davis, Founder and Chief Investment Officer, Quadratic Capital Management

Related: Inflation Is Here. How Prepared Is Your Portfolio? FREE Webinar

Diversification is one strategy that withstands the test of time. Lang says, “Diversify your portfolio and diversify your assets. I think some growth assets, real estate, bonds, and throw in some cryptocurrencies as well, too, because it's a good-- again, it's a good diversifier.” He also says inflation hedge stocks that have good, strong yields such as a Coca-Cola or a Procter & Gamble ”offer safety and offer a yield and protection if you have to be in the equity market” 

About Bob Lang, AAP Portfolio Co-Manager

About Bob Lang, AAP Portfolio Co-Manager

Related: Here's Why Gold and Crypto Should Be In Your Portfolio Now

Video Highlights | How to Play the Inflation Trade

Editor's Note: This webinar was recorded on October 28, 2021