Amid record inflation and global uncertainty, how can you explore inflation-proof portfolios?


As if anyone needs a reminder of inflation’s impact on 2022, U.S. consumers continue digging deeper in their wallets as inflation hit its highest point in 40 years.

According to the Labor Department’s Consumer Price Index, inflation increased by 8.5% for the 12-month period ending in March, the highest level of inflation since January 1982. Food and energy prices continued to lead the way: Energy soared a walloping 32% over the previous 12 months, food 8.8%.

By now, the factors driving inflation are familiar: pent-up consumer demand, the ongoing war in Ukraine, continued supply chain disruptions, and labor shortages, among them.

With inflation on the rise in the U.S. and globally, Covid-19 lockdowns in China, and the Russia-Ukraine War continuing to affect the economy, experts at the International Monetary Fund and World Bank are predicting a slowing of global growth. The IMF downgraded growth projections to 3.6%, from 4.4% in January. Both are significantly lower than world GDP growth of 6.1% in 2021.

Record inflation continues to be news in many parts of the economy. The shelter index (the costs associated with housing, not including investments and upgrades) is up 5.0% in the past year (the biggest rise since May 1991), and used cars and trucks are up 35.3%.

But a few bright spots are also appearing.

Retail sales rose 0.5% in March, the third consecutive month of increases. A survey by the Institute for Supply Management (ISM) indicates a shift in spending back toward services from goods, with growth in several areas, including education, arts, entertainment, and recreation as well as utilities, construction, and accommodation and food services. However, the ISM also suggested capacity constraints, inflation, and the ongoing effects of the Russia-Ukraine War will remain challenges.

With inflation rising at more than three times the Federal Reserve’s target rate, Fed policymakers, like consumers and investors, are also taking notice.

Whatever course inflation takes, it’s clear that navigating new and rocky waters will be a top-of-mind concern for everyone — including your clients.

As you and your clients look at options for inflation-proofing portfolios, you may be considering investments in commodities, real estate, bonds, value stocks, or foreign currency. FundVisualizer can help you discover and evaluate opportunities among more than 30,000 funds, including ETFs, and indexes.

Dive deep into existing funds and portfolios

Use FundVisualizer to understand how clients’ investments are poised to weather inflation by viewing sector, holdings, and asset allocation for individual funds.

Explore new options for diversifying

If you’re looking to diversify with new funds or investment categories, use FundVisualizer’s Explore feature to consider the universe of options. Search by fund name or Morningstar category to identify the top 20 performing funds in a specific category and share class. You can then explore performance and add funds for comparison.

Create and model portfolios

Use FundVisualizer’s Compare feature to create and compare two portfolios or research the returns of different allocation models across a variety of historical market conditions.

Use FundVisualizer now.

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