Citigroup Inc. strategists led by Scott Chronert argue that while inflation prints should continue to climb over the next few months, the trend will likely peak in February 2022 as the Fed tapers its asset purchases and supply chain kinks work themselves out. As such, investors should start positioning for the decline, they wrote.
But financial advisors managing through the current environment likely aren’t thinking that way, according to Dave Nadig of data provider ETF Trends.
“Transitory or not, it’s real, it’s in advisors’ faces, and there aren’t a lot of great alternatives available for them to solving the inflation conundrum,” said Nadig, the firm’s chief investment officer. “Inflation management is really not about growth or investing, it’s just about preserving buying power.”
This article was provided by Bloomberg News.