Navigating Stubborn Inflation: Risks, strategies, and portfolio construction for a possible decade of rising prices

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What if inflation remains stubbornly high for over a decade? Today, I explore the potential risks of increased inflation and interest rates, based on compelling research by US firm Research Affiliates. We delve into the historical behavour of inflation since 1970 and discuss the significant impact of low interest rates and quantitative easing on the current inflation scenario.

Join me as I examine the ripple effects of higher interest rates on borrowers, the possibility of a wage-price spiral fuelling inflation, and the role of housing costs and energy prices in the consumer price index. I also share insights on portfolio construction during these complex times, including strategies to invest in equities, REITs, and bonds without dramatically reducing exposure. Together, we'll navigate the challenges and uncertainties of the financial landscape, focusing on long-term goals and wealth-building strategies.

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IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.