Brian Levitt, Kathy Kriskey, & Kevin Petrovcik
Inflationary pressures are proving to be less transitory than once hoped. Now the question is, how aggressive will the Federal Reserve be in combating inflation? In December, the Fed surprised investors with a distinctly hawkish stance, and January ushered in dramatic volatility as investors became anxious about rate hikes. In this session we will explore what this means for your clients’ portfolios and highlight two strategies to consider right now: senior loans and real assets.
The topics covered will be:
- Inflationary pressures are proving to be less transitory than once hoped, and investors are growing increasingly concerned that a disruptive inflationary spiral will be in the offing.
- the Federal Reserve responded to the inflationary pressures with a distinctly hawkish stance, and in doing so ushered in dramatic volatility as investors became anxious about rate hikes
- Commodities and other real assets have historically offered an effective hedge against inflation, largely because of the pricing power of the underlying physical assets.
- Senior loans typically have low interest rate sensitivity, because of their floating rate coupons, which makes them an attractive option when rates rise.
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The opinions expressed are those of the author, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals. This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.