Michael Ashton of Enduring Investments - Everything You Need To Know About Inflation with "The Inflation Guy"

May 3, 2022

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Inflation is an enduring economic challenge that has persisted throughout human history. Despite the many efforts of economists and governments to control it, inflation remains a problem. What can advisors do to prepare and protect their investment portfolios?

In today’s episode, Rusty and Robyn talk with Michael Ashton, a.k.a. "The Inflation Guy", Managing Principal at Enduring Investments. Michael is recognized as one of the pioneers in U.S. inflation market innovation. Prior to founding Enduring Investments, he worked in research, sales and trading for several large investment banks including Bankers Trust, Barclays Capital, and JP Morgan. As a result of his deep experience and knowledge about inflation and how it impacts markets, Michael is considered the expert to the experts in the world of inflation.

Michael talks with Rusty and Robyn about the causes and concerns around inflation, how investors can potentially adjust their investment portfolios in an inflationary environment, as well as his outlook on inflation over the next few years.

Key Takeaways

[03:20] - An overview of Michael Ashton's professional career.
[05:40] - What Enduring Investment has to offer investors.
[09:41] - Michael's forecast on inflation over the next few years.
[12:46] - How investors can prepare for inflation.
[14:19] - The pros and cons of TIPS.
[17:00] - Michael's perspective on I Bonds.
[19:07] - Can digital assets or cryptocurrencies be used to fight inflation?
[21:53] - The best time to purchase a car or to build a house.
[28:16] - Michael's outlook on grain prices and food prices.
[31:08] - Michael’s forecast on educational inflation.
[34:40] - What global debt means for financial portfolios.
[39:10] - Why “defend your money” became Michael’s tagline.
[45:02] - What makes a good investment manager.
[46:41] - How Michael maintains his physical and mental health.

Quotes

[16:49] - "Inflation exposes securities. That's what regular treasuries are. And TIPS are immune to inflation." - Michael Ashton

[18:05] - "If you're a small investor, the first investment you should be making is to take everything and put in into I Series Savings Bonds which have no interest rate risk, have no credit risk, and pay you inflation." - Michael Ashton

[30:13] - "Food and energy prices change a lot. They also feedback very quickly on our perceptions of inflation as well. And global food shortages lead to political unrest at home and abroad and further the deglobalization trend that's in process." - Michael Ashton

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