How to: Re-evaluate Portfolio for a New Era of Higher Inflation
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Published 2022-03-18
The lending market is already ahead of the Fed. The average fixed rate 30 year mortgage topped 4% for the first time since 2019 in the latest reporting week. It's happening in a hot housing market. The median listing price for homes hit an all-time high of $392,000 in February and the inventory of homes for sale fell to a record low in January.
By raising rates the Federal Reserve intends to make borrowing more expensive. That’s supposed to dampen demand for goods and services and slow price increases, i.e., inflation down. With inflation running close to an 8% annual rate, a 40 year high, it remains to be seen how effective the Fed’s incremental approach will be.
This week’s guest, a noted investment strategist known for his macro analysis and thematic investing, expects long-term inflation to be higher than it's been in the past decade and believes most portfolios are not positioned for this new reality. In fact, he says the vast majority of investors, institutional and individual, are holding the winners of yesteryear instead of the winners of future years. He has recommendations to bring us up to speed!
He is Richard Bernstein, Chief Executive and Chief Investment Officer of Richard Bernstein Advisors; he says most portfolios are not positioned for a new era of higher inflation.
00:00 Hello
00:36 Introduction
01:45 Interview with Richard Bernstein
20:35 One Investment
23:48 Action Point
WEALTHTRACK #1838 broadcast on March 18, 2022
More Info: wealthtrack.com/how-to-reposition-your-portfolio-f…
All Comments (21)
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Richard gives an articulate and refreshing perspective on the evolving economic environment that we find ourselves in. Consuela is a tremendous interviewer and host! Very thought-provoking stuff, far better than you find on most of the financial/investing media out there today.
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Wealthtrack is one of the best financial education programs i have seen. Ms. Mack is a skilled interviewer who always asks the exact questions i want to ask the interviewee myself. Learned so much from listening to Mr. Bernstein and his way of thinking and verifiable from my own technical studies. Thank you both!
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She’s a very good interviewer bc she allows the person whom she is interviewing to speak. There’s not a bunch of interruptions
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Mr. Bernstein gave the most intelligent, common sense and accurate take on the current investing environment I've heard in months. Awesome interview!
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Thank you, Ms. Mack.
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I learned two things: how lowering interest rates makes higher p/e companies better investments, and that banks stop lending when the yield curve inverts. Very helpful information. Thank you.
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The problem with tactical AA changes is they rarely work out.
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so very grateful ty .it seems the buying in the pro-inflation and energy sectors is visible most on down equities days.
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Not all central banks will successfully snuff out inflation locally. Since inflation is in most countries, it's gonna weigh on future inflation worldwide.
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Every investor should be required to listen to this. It is playing out right now.
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If you buy and hold the whole market, you hold both growth and value, for both high inflation and low inflation times. I do tilt toward stocks that do well in rising rates (value oriented, dividend paying stocks, but that is because I am preparing for retirement). In general, buy and hold the entire US market.
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Dear Mr. Richard, I learn a lot from you in this video. Thank you so much .. would you please recommend some top books about investment for a beginner to read.
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Glad your feeling better. 😇👑🌍🌏🌎💚💋
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Your guest was very informative and articulate. I hope that Santa gives me some Exxon stock this year - just a quick thought, some coal in the stocking might not be so bad after all!
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so i hold most of my money in an s&P index fund and total market index fund; Is that better or worse for the coming decade?
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Dope talk
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FAs should send these videos to their clients!
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Go too Treasury bonds all day long. Straight cash is the best way to go. The 30 year bond will be safer for you anyway. Robert Kessler has been my favorite for investing advice.
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So, the answer is to buy Dogecoin? Actually, this was a pretty good presentation. I like Mack's interview style. Great channel.
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He doesn't just speak, he teaches!
