INSIGHTS

Thinking About Inflation in Risk Terms

Inflation has been subdued in the United States for the last three decades. Technological advances, increased globalization, and inflation targeting from the Fed have helped to keep inflation low. In this piece, we analyze historic inflationary environments to understand the protection offered by different types of assets. Using a variety of risk tools, we consider the impact inflation has on an investor’s overall portfolio and their obligations. No single asset class can reliably protect against inflationary environments but through constructing diversified portfolios and understanding risk exposures, we believe an investor can best position themselves for an uncertain future.


One of the authors of the paper, Danny Sullivan – Verus Director | Risk, was featured on Quick Take – Money Life with Chuck Jaffe. Listen in as Chuck helps break down the paper to understand the history of inflation, how it impacts the way people are constructing portfolios, and how much inflation protection is needed.

Danny Sullivan on Quick Take – Money Life with Chuck Jaffe (MP3 Podcast – 8:12 min.)